BAA moved a step closer to refinancing its debt by agreeing new lending facilities with a group of eight banks and announcing that it will pay a large chunk of its borrowings next month.
The UK airport operator said it completed a €760 million four-year debt facility, marking significant progress towards refinancing its subordinated debt of €2
billion. It said the refinancing was greater than the €610 million initially targeted due to excess demand from banks.
BAA, which is owned by Spanish group Ferrovial, said it intends to prepay up to €1.3 billion of the debt facility next month, helped by €460 million from its revolving credit facilities and proceeds from the sale of its stake in airport property partnership APP.
The group plans to refinance the remainder of the debt from a variety of sources, including asset disposals, loans and capital markets issues. The new facility has a margin of 3.25% for the first three years, rising to 3.75% in the final year, it said.