Auckland International Airport Ltd has priced the sale of $US150 million ($NZ193 million) of notes in the United States private placement market to refinance bank debt maturing next year.The operator of Auckland's airport had earlier said it was conductin
Auckland International Airport Ltd has priced the sale of $US150 million ($NZ193 million) of notes in the United States private placement market to refinance bank debt maturing next year.
The operator of Auckland's airport had earlier said it was conducting an investor roadshow with a view to raising money in the private placement market.
It said today that it has priced three tranches, each of $US50 million, of notes. A 10 year note has a 4.42 percent coupon, a 12 year note has a 4.57 percent and a ten year note has a 4.67 percent coupon. The first two are drawn in February next year and the third note is drawn in July next year.
The entire transaction has been swapped into New Zealand dollars providing long term funding at the New Zealand three-month bank bill rate plus 2.145 percent, 2.078 percent and 2.268 percent respectively.
The transaction introduces a new source of funding and lengthens the maturity of the company's debt.
The money raised will be used to pay fund bank debt maturing in March 2011 and fixed and floating rate notes maturing in July 2011.
The private placement market provides a way of selling securities to a small number of private investors without documentation associated with public offers.
