Australia’s North Queensland Airports Group (NAQ) has closed the deal on a $529 million package to refinance the debt used in the acquisition of Cairns and Mackay airports in 2008.
According to the operator, the package will also be used to fund ongoing capital expenditure for the next five years as well as provide working capital.
John Andrejic, chief financial officer at NAQ, said: “We are very pleased to have completed this milestone financing following what we viewed as a significant enhancement to the credit risk profile of the group.
“At acquisition, the $200 million domestic terminal redevelopment for Cairns Airport was only partially complete. The successful completion of this project ahead of time and under budget enabled us to finalise negotiations for the new passenger charge regime with the airlines.”
According to NAQ, the company has performed very well since the privatization of Cairns and Mackay airports in 2008 and has witnessed strong growth over the last three years.
Andrejic said that the debt facilities are supported by its existing relationship banks – Westpac, CBA, NAB and ANZ – with the addition of Japanese bank Sumitomo Mitsui Banking Corporation (SMBC).
He said: “It was very pleasing to see our existing banks continue to support the business. We have a strong relationship with them and look forward to working with them for years to come.”
NQA is owned by JP Morgan’s Infrastructure Investments Fund, Hastings Funds Management-managed The Infrastructure Fund, Auckland International Airport and the Perron group.