Oaktree takes stake in Aecon Utilities

Oaktree Capital Management has agreed to take a 27.5% ownership interest in Aecon subsidiary, Aecon Utilities Group.

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Oaktree will make a $150m convertible preferred equity investment in the company, establishing a partnership between Aecon Utilities and Oaktree that will also give the utilities business a standalone committed revolving $400m credit facility and supportive capital partners in Oaktree and Aecon.

“This strategic investment will accelerate growth in Aecon Utilities, further strengthen Aecon’s balance sheet to take advantage of growth and concession opportunities, and unlock value for our shareholders as we continue our strategic focus on infrastructure solutions delivered under more collaborative models and linked to decarbonization, sustainability and the energy transition,” said Jean-Louis Servranckx, president & chief executive of Aecon.

“We see tremendous opportunity to leverage its capabilities to expand with new and existing customers while maintaining the commitment to workforce safety and exceptional quality for which Aecon Utilities is known,” added Andrew Moir, senior vice president in Oaktree’s Power Opportunities Group.