Auckland Airport US loan priced

Last updated 13:56 25/07/2014

Relevant offers

Industries

Bid for Acurity gets OIO approval Vincent Aviation enters receivership MediaWorks looks ready for 2015 float Marryatt takes an $800,000 final walk Marina firm has $1.3m in debts Weta caves in to demand for more Bidding to be property auction champion New crane gives port extra lift Port of Tauranga expects similar profit Quakes fuel boost to Wellington economy

Auckland International Airport has completed the refinancing of its $454 million capital return to shareholders on April 14.

The airport company today priced a US$250m ($291m) loan from United States investors.

The proceeds will repay the company's remaining $130m bridge loan relating to the capital return and a $125m fixed-rate bond maturity on November 27.

The loan, from the United States Private Placement (USPP), is a 12-year bond with a US coupon of 3.61 per cent to be drawn in November.

The entire US dollar proceeds have been swapped back to New Zealand dollars, providing 12-year funding at the New Zealand three month bank bill rate plus 1.255 per cent.

Auckland Airport's chief financial officer, Simon Robertson, said it was an "outstanding" transaction at "the lowest borrowing margin versus United States Treasuries for a New Zealand company in the USPP market in the last decade".

It is the airport's third and final loan this year to refinance capital return and diversify the company's borrowing.

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content