MAG completes £560m refinancing deal

MANCHESTER Airports Group has completed the £560m refinancing of revolving credit and liquidity facilities.

MAG says the facilities will provide strong support over the next few years for  its growth and investment activities, including the Manchester Airport Transformation Programme.

The facilities were oversubscribed with the final selection of eight existing and new relationship banks from around the world, reflecting global credit markets’ confidence in the strength of MAG’s business profile.

The aggregate amount of the new facilities is £560m. They comprise a £500m revolving credit facility and £60m in standby liquidity facilities.

The new revolving credit facility has a five-year term maturing in June 2021 with the option to extend subject to lenders agreement.

The liquidity facility provides a committed 12 months of interest cover supporting MAG’s listed bonds and other credit facilities. The new facilities replace similar facilities that were due to mature in February 2018.

MAG says it remains committed to its strong investment grade ratings with Fitch and Moody’s and its strategy to maintain a long-term financing structure, including investment from the capital markets.

The remaining £90m balance of the term loan used for the successful acquisition of London Stansted airport will be repaid from the new revolving credit facility.

Neil Thompson, MAG’s chief financial officer, said: “This successful refinancing of our bank facilities combined with our bond issuances in 2014 provides MAG with a strong long-term funding platform to support the continued growth of the business, including investment in our infrastructure at Manchester and London Stansted and great service to passengers and airlines. We are delighted at the strong support shown by our bank group.”