Sydney Airport Gets More Than A$1 Billion in Debt Commitments from Banks
Sydney Airport, Australia’s biggest airport, said banks have offered it more than A$1 billion ($965 million) in loans to refinance debt maturing in 2011 and 2012.
The commitments from new and existing lenders include loans with terms between three years and seven years, which carry margins of between 200 basis points and 250 basis points over the bank bill swap rate, the airport’s majority owner MAp Group said in a regulatory filing today. The total amount exceeds Sydney Airport’s term debt maturing in 2011 and 2012, and financial close is expected by the end of October, according to the statement.
MAp Group and its subsidiaries have about A$1.35 billion of bonds and loan facilities maturing over the next two years, according to data compiled by Bloomberg. Its unit Sydney Airport Finance Co. sold $500 million of 10.5-year bonds denominated in U.S. dollars yesterday, which yield 260 basis points more than similar-maturity Treasuries, the data show.
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