AUD$215 million debt successfully raised for BAC
22 August 2012
Brisbane Airport Corporation Pty Limited (BAC) today announced a successful AUD$215 million debt raising which will be used to repay maturing bonds and fund capital expenditure and working capital.
In the US Private Placement market, AUD$215 million was raised with $77 million in 10-year, AUD$60 million in 12-year and AUD$78 million in 15-year fixed rate bonds. Coupons were 3.89 per cent, 4.04 per cent and 4.19 per cent in US dollars in the 10, 12 and 15 year issues and 6.75 per cent in a 10-year Australian dollar issue. The lead arranger was Commonwealth Bank of Australia.
BAC Chief Financial Officer, Tim Rothwell, said the Corporation was pleased with the continued strong interest in the USPP markets. “BAC was one of a number of companies that raised funds this year in the USPP market. The market has a good knowledge of Australian corporates and interest in strong infrastructure and airport businesses, such as BAC,” he said.
The success of this US Private Placement demonstrates the high level of confidence of US investors in BAC’s solid financial position, with the Corporation attracting a total of 19 investors across both issues. This transaction contributes to the diversification of the Company’s debt portfolio and benefits from attractive market conditions as US reference rates are close to historical low levels.
The terms offered, out to 10 and 15 years, are not currently available in Australian bond markets.
BAC, which is advised by RBC Capital Markets, has a 50 year lease to 2047 over Brisbane Airport, with an option to extend for a further 49 years, is 81 per cent owned by Australian superannuation and similar funds and is rated BBB by S&P and Baa2 by Moody's.