24.01.06
BAA, the UK airports operator, yesterday unveiled plans to issue a three-tranche bond issue to refinance the £1.3bn acquisition cost of Budapest airport. The owner of Heathrow and Gatwick airports aims to sell bonds denominated in euros and sterling next week.
The two euro tranches are expected to have maturties of between six and 12 years and the sterling issue is expected to have a maturity of at least 12 years, according to bank sources close to the deal.
The three-day marketing roadshow for the deal starts on Thursday and the company will meet investors in Germany, France, the Netherlands and the UK. The sale will be completed after the roadshow ends next Monday.
In December BAA paid £1.255bn in cash to buy 75 percent minus one share of Budapest Airport, as well as the 75-year management contract from the Hungarian government. The airport's operator said last month that Budapest Airports' earnings before interest, tax, depreciation and amortisation would more than double to about €148m by 2011.
BAA is rated Baa1 by Moody's Investors Service and two notches higher A by Standard & Poor's. ABN Amro, Barclays Capital, Morgan Stanley and RBS are lead-managing the sale.
