British airport operator BAA Ltd has completed a £625 million (approximately $ 970 million) loan facility with a group of eight major international banks in order to refinance the group's subordinated debt of £1.57 billion.
The owner and operator of 6 UK airports including London's Heathrow and Stansted, and Naples airport in Italy, intends to pay £1.1 billion or approximately 70 per cent of its debt in September.
The sources for repayment include the new 'Class B' junior debt facility of £625 million, drawings under revolving credit, and proceeds from the sale of its stake in the airport property partnership (APP) in June, the company said in a statement issued Friday.
London-based BAA is one of the largest transport companies in the world handling approximately 110 million passengers annually with around 76 per cent of it coming from the London area. The airport operator is part of an international consortium led by Spanish infrastructure giant Grupo Ferrovial.
BAA operates Heathrow, Stansted, Edinburg, Glasgow, Aberdeen, and Southampton airports in the UK, and Naples airport in Italy.
The new loan facility will enable BAA to rebalance its debt at senior, junior, and subordinated levels whilst leaving financial ratios comfortably within required levels, the company said.