Cintra Sells Car Parks Division

June 29, 2009 Car_park_3 Car_park_2 Car_park_1

Cintra has reached an agreement to sell its entire 99.92% stake in its subsidiary Cintra Aparcamientos, the car parks division, to a consortium led by Portuguese car park owner Emparque.

The consortium comprises Assip, Es Concessoes, Espirito Santo Infrastructure Fund I Fundo de Capital de Risco, Transport Infrastructure Investment Company (SCA) SICAR, Ahorro Corporacion Infraestructuras, FCR, Ahorro Corporacion Infraestructuras 2, and Banco Espírito Santo de Investimento.

The deal amounts to €451m and is broken down as follows:
  • €400m (price of the shares and cancellation of the debt owed to Cintra)
  • €51m (Cintra Aparcamientos bank debt)

The sale of Cintra Aparcamientos will provide Cintra with capital gains amounting, based on preliminary estimates, to approximately €97.4m.

The deal is conditional upon obtaining approval from the Spanish competition authorities.

Infra-News previously reported (May 28) that Emparque was hotly tipped as the front-runner in the sales process. Several sources said that final offers for the sale of Cintra's car parks unit were submitted on May 22. Other bidders are thought to have included:
  • PAI Partners;
  • RREEF/ Vinci;
  • Valiance/ Isolux.

Infra-News understands that Emparque's fully committed debt funding is being provided by a group of seven banks, namely Barclays, BES, BPI, Banif, Caixa BI, Millenium BCP and Santander. BES and Caixa BI are financial advisors to the buyers.

The €440m senior debt loan (including a capex tranche) has an amortizing tranche with a seven year term and a bullet tranche in year eight. Margins are understood to be between 400bps and 450bps. A source close to the deal said that although the debt funding was fully committed, there was still interest from four to six banks - mostly Spanish - to participate in a possible syndication. "We would be keen to syndicate the debt on closing. There is still appetite and some interest from banks to participate in this deal."

Financial advisors BBVA and Calyon were understood to have received initial offers from a total of seven banks to provide a staple package for the sale.

Sources previously told Infra-News that Banesto, Caja Madrid, ING, La Caixa, Santander and WestLB are looking at providing a €300m loan to the future winner. Tenor on the loan is understood to be between five and seven years with margins starting at 350bps and going up to 450bps.

Deal Details
Cintra valued its car parks business at about €470m, representing a 9.8x EV/ EBITDA multiple, but a source close to the deal pointed out that €400m, or an 8.3x EV/ EBITDA multiple, was a more realistic price.

The car parks division had an EBIDTA of €48m last year, which represented 10% of the company's total EBIDTA and about 23% of its revenues.

Asset Details
In the car park sector, Cintra manages 300,000 parking spaces in 140 cities in Spain, Andorra, Puerto Rico, the UK and the US. Most of Cintra's car park assets are located off-street and have an average concession length of 30 years.

Emparque owns a total of 60,000 parking spaces across Portugal. The company started expanding internationally in 2007, with the acquisition of a majority stake in Park Yonetimi ve Sistemieri, a Turkish car parks operator which manages almost 3,500 parking spaces, mostly in Istanbul