Auckland International Airport Ltd has priced a $US250 million loan transaction in the US private placement market, its third & final debt capital markets transaction this year to refinance the $NZ454 million capital return paid to shareholders on 14 April.
The proceeds will repay the company’s remaining $NZ130 million bridge loan borrowings in relation to the capital return and a $NZ125 million fixed rate bond maturing on 27 November.
The new US private placement funding is a single 12-year tranche of $US250 million with a $US coupon of 3.61%. It will be drawn on 25 November.
The entire $US proceeds have been swapped back to $NZ, providing 12-year funding at the New Zealand 3-month bank bill rate plus 1.255%.
Chief financial officer Simon Robertson said on Friday: “This is an outstanding transaction for Auckland Airport. We are thrilled with the pricing & volume achieved, which validates our decision in 2010 to diversify our borrowing sources and seek long-term funding via the US private placement market. Notably, this transaction has achieved the lowest borrowing margin versus US treasuries for a New Zealand company in that market in the last decade.”
Attribution: Company release.