BAA places GBP400m bond to refinance existing debt
UK's BAA announced (01-Sep-2010) it has successfully placed a GBP400 million Sterling Class B bond, with a 2018 maturity and a fixed annual interest coupon of 6.25%. The company generated an initial order book of over GBP1 billion and was able to price inside initial price guidance at 375 basis points over gilts. BAA plans to use the proceeds of the bond issue to refinance part of its existing bank debt, lengthening the group's debt maturity profile. [more]
BAA: "BAA is delighted to have achieved another successful bond placing with a broad group of investors to underpin financing for improving Heathrow. Following the GBP625 million Class B bank loan announced last month, this shows the level of confidence many high quality investors have in the financial platform BAA has developed," Fred Maroudas, Director of Treasury. Source: BAA, 01-Sep-2010.