Kimberly-Clark's Strategic Investment in CC&L Infrastructure and Alpenglow Rail Enhances Rail Operations

Strengthening Rail Infrastructure: A Strategic Move by CC&L Infrastructure and Alpenglow Rail

In a significant development for the rail industry, Connor, Clark & Lunn Infrastructure (CC&L Infrastructure) and Alpenglow Rail announce the successful closing of their inaugural private placement financing, raising over CAD280 million. The transaction garners substantial interest from leading North American financial institutions, leading to an oversubscription that reflects robust investor confidence in the partnership's vision. The private placement notes secure an investment-grade rating, underscoring the strength of CC&L Infrastructure and Alpenglow's strategic partnership, which aims to establish a diversified portfolio of rail businesses across North America.

Established in 2019, the collaboration between CC&L Infrastructure and Alpenglow focuses on developing and operating rail terminals strategically located in key refining and petrochemical hubs. Alpenglow's portfolio comprises six rail terminals—three in Canada, operating under the VIP Rail brand, and three in the U.S. under the USA Rail brand. These terminals facilitate a comprehensive suite of rail solutions, including railcar storage, switching, transloading, and railcar cleaning. This diverse range of services positions the partnership to effectively meet the growing demands of the rail sector, particularly in regions critical to the energy and industrial markets.

Ryan Lapointe, Managing Director at CC&L Infrastructure, emphasizes the importance of this financing round in reinforcing the partnership's operational strength and the high quality of their rail platform. He articulates a vision for a safe and customer-focused rail business that prioritizes reliability and efficiency. Similarly, Henning von Kalm, CFO of Alpenglow, notes that the private placement not only validates their resilient business model but also sets the stage for future growth and value creation. This financing is a pivotal step in aligning their long-term investment strategy with the evolving landscape of North American rail operations, paving the way for enhanced service offerings and operational excellence.

In related news, CC&L Infrastructure and Alpenglow continue to explore opportunities for expanding their rail operations. The successful financing positions them well to capitalize on current market trends and demands, as the rail sector increasingly plays a vital role in the logistics and supply chain frameworks that underpin various industries. The partnership's commitment to developing a comprehensive rail network aligns with broader trends in infrastructure investment, where the need for efficient transportation solutions is paramount.

This strategic financing initiative marks a noteworthy milestone for CC&L Infrastructure and Alpenglow Rail, reflecting their dedication to building a customer-centric rail business that can adapt to the dynamic needs of the North American market. As they move forward, their focus on operational excellence and growth will likely enhance their competitive position within the rail industry.