Syncora Guarantee Inc. unit Pike Pointe Holdings LLC has agreed to sell its subsidiary that owns and operates toll road facilities, American Roads LLC, to American Roads AcquireCo LLC, a wholly owned subsidiary of DIF Infra 5 US LLC.
The cash consideration expected to be received for American Roads is approximately $220 million, before payment of related expenses. The deal provisions provide for the payment of additional amounts if specified conditions are met within 12 months of the date of the agreement.
In addition, Syncora will be entitled to take a distribution of approximately $31 million of cash in American Roads and related entities prior to the closing of the transaction. Taken together with the approximately $24 million in cash held by Pike Pointe that is outside the scope of the American Roads transaction, Syncora will retain approximately $55 million of cash from Pike Pointe and its subsidiaries, all of which was previously included in Syncora's consolidated balance sheet.
The closing of the sale of American Roads is subject to conditions and is expected to take place in the third quarter.
Syncora Holdings Ltd. is the parent of New York-based financial guarantee insurance company Syncora Guarantee.
Evercore is acting as financial adviser to Syncora on the sale and Kirkland & Ellis LLP is acting as legal adviser to Syncora on the sale.