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26 February 20213 minute read

DLA Piper advises lenders on the refinancing of the Warnow Tunnel in Germany

DLA Piper has advised the lenders on the EUR115 million refinancing of the Warnow Tunnel in Rostock (Germany), also known as the Warnow River Crossing (Warnowquerung).

The borrower and concession owner is Warnowquerung GmbH & Co. KG, ultimately held by Atlas Arteria International Limited, a listed global owner, operator and developer of toll roads. The concession for operating the Warnow Tunnel expires in September 2053 (one of only two public-private partnership toll tunnels in Germany).

The Warnow Tunnel forms part of a 2.1 kilometer toll road and connects the east and west banks of the Warnow river in the Hanseatic City of Rostock in Mecklenburg-Vorpommern, Germany. The tunnel under the Warnow River is 800 meters long and consists of six waterproof concrete elements, which have been positioned in the riverbed using the "float and sink" process.

The financing arrangements include a EUR115 million debt facility (fixed and variable tranches), together with a cash injection from Atlas Arteria of around EUR42 million that will be used to repay EUR142 million of current debt and termination of the current hedging arrangements.

The DLA Piper team was led by partner Dr Torsten Pokropp and counsel Robert Hofbauer. It also comprised partner Dennis Kunschke (all Finance & Projects, Frankfurt), partner Dr Frank Roth (Public Procurement Law, Cologne), of counsel Martin Heinsius (Tax, Frankfurt), senior associate Gabriela von Wietersheim (Finance & Projects, Cologne) and legal project manager Tamara Schwenk (Frankfurt). From the DLA Piper office in Luxembourg, partner Xavier Guzman and associates Joris Reinert (both Finance & Projects) and Marie Germain (Tax) were also involved. From the Leeds office partner David Smith (Tax), senior associate Robert Cockburn and associate Alexandra Smyllie (both Finance & Projects) provided advice on the transaction.