BAA bondholders approve refinancing deal
- Published: 07 August 2008 10:54
- Author: Jessica Rowson
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- Last Updated: 07 August 2008 10:54
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BAA announced yesterday that the initial steps for refinancing which involves the transfer of bonds to a new financial structure, has been approved by bondholders
Ferrovial financed the takeover of BAA in 2006 with a series of unsecured bonds worth £4.5bn.
"Once successful, the intention always was to reissue the bonds using the security of the regulated assets like Heathrow to back the bonds," explained a BAA spokesman.
"To reissue the the bonds, it requires all the bond holders to agree."
In meetings held on Tuesday, holders of the nine series of bonds voted to accept BAA's proposal to migrate bonds into the new ring-fenced structure, backed by Heathrow, Gatwick and Stansted Airports and Heathrow Express.
This outcome represents a significant step in the re-financing process. BAA expects to make a further announcement soon, confirming that the conditions relating to the effectiveness of the Proposals have been satisfied or waived.
A number of other workstreams (including finalising the arrangement of banking facilities for the non-designated airport group) are still required for the re-financing to reach a successful close. BAA works towards completion during August.
