openPR Logo
Press release

GIP’s Gatwick Airport Bond Refinancing is a Hit with Investors

03-29-2011 02:13 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: InfraNews

InfraNews

InfraNews

By Andrew Cavenagh

The refinancing of Gatwick Airport acquisition debt in the second half of February – with GBP600m (USD980m) of bonds and a fresh bank loan for just under the same amount – has put a structure in place to fund the British airport’s future long-term finance needs with capital markets debt.

The consortium, led by Global Infrastructure Partners (GIP), that owns Gatwick Airport sold two GBP300m (USD490m) bonds with 15-year and 30-year maturities to 113 different investors. The offerings – which are secured against the airport’s assets – attracted orders worth more than GBP2bn (USD3.25bn). Both instruments priced at the tight end of the guidance, at 205bps over the relevant UK Treasury benchmark issues.

The success of the sale and the obvious appetite for the paper may well lead the GIP consortium to refinance a four-year bank loan that formed the balance of the new debt arrangements before the end of the year. A total GBP598m (USD975m) of that loan has been drawn.

“The plan obviously is to take out the bank debt in the bond market, although we don’t have to do it before 2014,” said Deepak Agrawal, a principal at GIP. “Having said that, it’s difficult to rule out another issue this year but that will clearly depend on market conditions.”

Reducing the Cost of Debt
Agrawal added that putting a long-term capital structure in place that was “optimum” for the asset – in terms of the debt-equity ratio – and had been one of the key objectives of the refinancing. Another had been to reduce the cost of the airport’s debt.

The refinancing will cut the annual interest bill that the Gatwick Airport owners pay considerably. Both the coupons on the bond issues – 6.125% for the 15-year tranche and 6.50% for the 30-year instruments – and the margin on the bank loan are well below that of the GBP1.125bn (USD1.835bn) of bank facilities put in place to fund the acquisition of the airport in 2009. GIP acquired Gatwick Airport from the Spanish construction group Ferrovial at the end of 2009. “The margins are significantly better,” Agrawal acknowledged, but GIP is not disclosing the price of the latest bank loan. It is reckoned to be 175bps over LIBOR.

To read the full article, click here: http://www.infra-deals.com/research-and-reports/transaction-profiles/850473/case-study-gips-gatwick-airport-bond-refinancing-is-a-hit-with-investors.thtml.

For more information about InfraNews (www.infra-news.com) and find out if you are eligible for a free trial call Ken McAllister on + 44 (0) 207 786 9282 or e-mail at subscriptions@infraresearch.com. Please remember to quote your reference: INPR6OPR.

InfraNews is the most relevant, timely & accurate provider of news, analysis & research about the latest greenfield & brownfield infrastructure projects & deals across the European and global infrastructure communities.

Inframation Ltd, 1st Floor, 4 City Road, London EC1Y 2AA

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release GIP’s Gatwick Airport Bond Refinancing is a Hit with Investors here

News-ID: 168666 • Views: 1639

More Releases from InfraNews

Why the Eurozone Sovereign Crisis is a Bad Thing for Infrastructure Investors
By Peter Allison To say that fear stalked European financial markets during August is something of an understatement. While temperatures rose in Greece, Italy and Spain, markets headed in the opposite direction. The underlying theme was volatility. The swing in yields on ten-year Spanish and Italian government treasuries was an eye-watering 1% during one week in August. Equities dropped in value and then recovered slightly. Then they fell again. The price
Will KKR, Munich Re T-Solar Investment Kickstart Renewables M&A In Spain?
By Peter Kneller The Spanish solar market has been experiencing some strange goings-on of late, most notably KKR and Munich Re’s investment in Grupo T-Solar’s 168MW Spanish and Italian solar portfolio. The deal – one of the largest investments in an operational solar PV portfolio in the renewable energy sector’s short history - took place against the background of increased regulatory pressure in the country’s solar market. The bulk of installed solar PV
InfraNews Case Study: Multicurrency Programme Sets a Precedent for Infra Investo …
The NOK3.8bn (EUR477.8m) of sterling, dollar and kroner bonds that a venture between UBS International Infrastructure Fund and CDC Infrastructure issued in the second half of June to finance its acquisition of an 8% stake in Gassled has established a template for other recent financial investors in Norway’s offshore gas pipeline company to follow. Further bond issues to provide acquisition finance for shares in the company that ships a quarter
InfraNews Case Study: BAA Broadens its Investor Base with Inaugural US Dollar Bo …
UK airports operator BAA refinanced most of its outstanding medium-term bank debt in June with an inaugural USD1bn bond issue that significantly furthered the company’ strategic plan of broadening its investor base. The BAA funding securitisation vehicle, set up by the Ferrovial-led Airport Development and Investment (ADI) consortium in August 2008 to refinance its GBP10.3bn acquisition of the company two years earlier, has now issued significant volumes of capital markets

All 5 Releases


More Releases for GIP

Industry Analysis of Amenity Kits Market: 4Inflight, Aire Inflight, AMKO, AVID, …
This research report evaluates the global Amenity Kits market by key players/brands, region, type, and Application. This report also evaluates the global Amenity Kits market status, competition landscape, market share, growth rate, future trends, market drivers, opportunities and challenges, sales channels and distributors. The report focuses on the global Amenity Kits market status, future opportunities, growth analysis, key drivers and top players. The study objectives are to present the Amenity Kits
Global Amenity Kits Market Report 2018 Companies included 4Inflight, Aire Inflig …
We have recently published market research report on Amenity Kits. For inquiry email us at: sales@marketreportscompany.com Report includes data about consumer perspective, comprehensive analysis, statistics, market share, company performances (Stocks), historical analysis 2012 to 2017, market forecast 2018 to 2025 in terms of volume, revenue, YOY growth rate, and CAGR. The report also provides detailed segmentation on the basis of product type, applications and regional segmentation. The regional segment is further
Fiber Cement Market By Key Players : Evonik Industries AG, GIP GmbH, MASTERTEC G …
The Europe Fiber Cement Market generated revenue of $3,305 million in 2016, and is expected to garner $4,411 million by 2023, registering a CAGR of 4.6% from 2018 to 2023. The key players profiled in the report include Evonik Industries AG, GIP GmbH, MASTERTEC GmbH & Co. KG, Briarwood Products Ltd, RILCO UK, VIVALDA Limited, BRICQ SAS, PLAKA Group France SAS, Compagnie de Saint-Gobain S.A., Amiantec 3000, S.L., Grupo LOHE F.S.,
Europe Fiber Cement Market : Evonik Industries AG, GIP GmbH, MASTERTEC GmbH & Co …
“Increase in adoption of non-asbestos fiber cement products post the ban on asbestos products has supplemented the growth of the market. The region focuses on eliminating use of toxic minerals in infrastructure development projects and promotes the adoption of eco-friendly cement products.” A recent report published by Allied Market Research, titled, Europe Fiber Cement Market-Opportunity Analysis and Industry Forecasts, 2013-2023, projects that the Europe fiber cement market is estimated to reach
Amenity Kits Market Report 2018 Companies included Aire Inflight, 4Inflight, AMK …
We have recently published this report and it is available for immediate purchase. For inquiry Email us on: jasonsmith@marketreportscompany.com ********* This market study includes data about consumer perspective, comprehensive analysis, statistics, market share, company performances (Stocks), historical analysis 2012 to 2017, market forecast 2018 to 2025 in terms of volume, revenue, YOY growth rate, and CAGR for the year 2018 to 2025, etc. The report also provides
Amenity Kits Global Market 2017: Key Players – 4Inflight, AVID, Buzz, GIP, Lin …
Amenity Kits Market 2017 Wiseguyreports.Com adds “Amenity Kits Market –Market Demand, Growth, Opportunities, Analysis of Top Key Players and Forecast to 2022” To Its Research Database. Report Details: This report provides in depth study of “Amenity Kits Market” using SWOT analysis i.e. Strength, Weakness, Opportunities and Threat to the organization. The Amenity Kits Market report also provides an in-depth survey of key players in the market which is based on the various objectives