Private Placement Investors Eye US P3 Pipeline

    April 2014

    An April 11, 2014, article in InfraAmericas artcle extensively quoted Squire Sanders lawyer Roderick N. Devlin on the changing financing options for US P3s. Roddy notes that institutional investors are likely to be increasingly involved in this sector.

    The article, “Private Placement Investors Eye P3 Pipeline,” quotes Roddy as saying that availability-based projects as of particular interest to institutional investors, given the “long-term, steady and relatively low-risk payment structures” offered by such projects. Roddy also noted that public procurement authorities and private sector sponsors could make the P3 structure more inviting to institutional investors who “have come to expect certain representations, warranties, covenant, and legal opinion support,” different from those required by bank lenders. Procuring authorities and private sector players could encourage institutional investor participation, “both at the initial closing and in refinancing, by addressing such expectations upfront in the project and financing documents,” he added.