Syncora Guarantee’s fully owned subsidiary Pike Pointe Holdings has entered an agreement to sell American Roads to DIF Infra 5 US subsidiary American Roads AcquireCo for a cash consideration of $220m.

Syncora Guarantee is itself a subsidiary of Syncora Holdings.

Syncora President and CEO Frederick Hnat said: “As a company, we continue to execute effectively on our strategic initiatives, one of which is monetisation of non-core assets.

“The sale of American Roads represents yet another success in our efforts to return value to our stakeholders.

“We believe the terms of this sale are highly favourable to Syncora and are very pleased with the outcome of the sale process.”

“The sale of American Roads represents yet another success in our efforts to return value to our stakeholders.”

American Roads owns and operates multiple toll road facilities in the US and Canada.

Under the agreement, Syncora is expected to receive $220m as cash consideration before payment of related expenses, including terms that involves payment of additional amounts if specified conditions are fulfilled within 12 months from the date of the deal.

Furthermore, Syncora is entitled to take a distribution of nearly $31m of cash in American Roads and associated entities before the closing of the transaction.

The company is expected to retain nearly $55m of cash from Pike Pointe and its subsidiaries, including $24m of cash held with Pike Pointe outside the scope of this deal.

The transaction is expected to be completed in the third quarter of this year subject to customary closing conditions, which includes a filing under the Hart-Scott-Rodino Antitrust Improvements Act.