BAA struggling with refinancing
09.05.08
BAA has not signed up enough banks to a debt renegotiation and may not be able to start talks with bondholders in coming weeks as it had planned, the UK airports operator said today. It has been trying to renegotiate about £10 billion of debt by migrating bondholders into an investment-grade, ring-fenced securitisation structure backed by the group's designated assets - Heathrow, Gatwick and Stansted airports in London and the Heathrow Express train service.
The company plans to negotiate with leading euro and sterling bondholders under the auspices of the Association of British Insurers. The company had hoped to migrate the non-convertible bonds into the structure by the end of the second quarter and complete the refinancing early in the third quarter.
BAA said in a statement: ‘BAA has not finalised certain aspects of its refinancing plans, including completion of the rating process and obtaining sufficient commitments from the banks asked to participate in certain bank facilities.'
‘Whilst BAA hopes to be in a position to commence consultations with holders of BAA bonds through the auspices of the Association of British Insurers in the coming weeks once these aspects have been finalised, BAA may not ultimately be in such a position owing to continuing challenging market conditions.'
‘If and when BAA is in a position to commence consultations with bondholders, BAA will make a further announcement.'
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