Published on : Saturday, June 18, 2016
Manchester Airports Group (“MAG”) has refinanced its existing five year revolving credit facility and term loans and secured new credit facilities; a new £500m revolving credit facility and a £60m liquidity facility.
The leading airport group’s existing £300m revolving credit and £60m liquidity facilities, along with £90m in remaining term loans, have been refinanced as part of this process.
As part of its acquisition of London Stansted Airport from BAA in January 2013 MAG successfully arranged debt facilities comprising £900m in term loans and a £300m revolving credit facility provided by a group of 12 banks.
A year later, in February and April 2014, MAG successfully issued two inaugural UK GBP public listed bonds totalling £810m, to which Fitch and Moody’s recently reaffirmed their strong investment grade credit ratings of BBB+ and Baa1 respectively. MAG remains committed to its strong investment grade ratings with Fitch and Moody’s and its strategy to maintain a long-term financing structure, including investment from the capital markets. Proceeds of the bond issue were used to pay down the 2013 term loans, with the remaining £90m being refinanced with the new revolving credit facility.
The new bank facilities are part of the long-term financing for the Group, consistent with its strategic aims and long term capital requirements, including the planned £1 billion transformation programme at Manchester Airport, the only UK airport, other than Heathrow, with two runways.
The new credit facilities will be provided by BNP Paribas, Barclays, Bank of Tokyo Mitsubishi UFJ, Canadian Imperial Bank of Commerce, HSBC, Handelsbanken, National Australia Bank and The Royal Bank of Scotland. Most of these institutions have an existing relationship with MAG, a testament to the strong results that have been achieved together over recent years. However, the addition of new banks also demonstrates MAG’s ability to extend relationships into new banking markets.
MAG’s airports are a key part of the UK’s aviation infrastructure, providing much needed capacity and delivering over 50 million passenger journeys each year.
Neil Thompson, MAG’s Chief Financial Officer, said: “This successful refinancing of our bank facilities combined with our bond issuances in 2014 provides MAG with a strong long-term funding platform to support the continued growth of the business, including investment in our infrastructure at Manchester and Stansted and great service to passengers and airlines. We are delighted at the strong support shown by our bank group.”
Source:- Manchester Airport