Melbourne Airport

News & events

Melbourne Airport completes US$600 million refinancing

Jun 23, 2011

Melbourne Airport today announced it successfully issued US$600 million in the US Private Placement (USPP) market, completing the refinancing program which commenced in August 2010. 

Melbourne Airport Chief Financial Officer, Kirby Clark, said the deal is further confirmation of the US financial markets’ confidence in the management and stability of Melbourne Airport.

“Melbourne Airport is a stable business with consistent growth and we are pleased that investors have maintained their confidence in our long-term financial stability as well as the stability and strength of both the Victorian and Australian economies.”

The issue was evenly spread over 10, 12 and 15 years and priced at 150, 160 and 180 basis points over US treasuries respectively.  Bids totalled over US$1 billion, making it four times oversubscribed following an initial offer of US$250 million.  The successful refinancing was supported by the Federal Government’s recent extension of the existing Tripartite Deeds.

“This US$600 million issue of up to 15 years provides us with long-term funding and is aligned with the long term nature of our business and assets.  The issue will also extend and smooth the debt maturity profile of the business,” said Mr Clark.

“Melbourne Airport has a long term capital plan of over A$1 billion to accommodate future passenger growth and the proceeds from this issue will help fund these developments as well as repay certain short-term maturities.”

Melbourne Airport continues to be rated A- by Standard & Poor’s and A3 by Moody’s.

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