ABI approves Ferrovial new bondholder structure
14.07.08
Grupo Ferrovial SA's £10 billion debt refinancing, linked to its UK airports division BAA, made further progress yesterday with the appoval of a new bondholder structure. BAA announced a new launch of proposals relating to the migration of £4.5 billion existing bondholders into an investment grade, ring-fenced structure backed by Heathrow, Gatwick and Stansted airports and Heathrow Express.
The special committee of the Association of British Insurers (ABI), representing nearly 40% of the bondholders, has approved the new structure and has urged other members of the ABI to vote in its favour. It is thought that once the ABI votes in favour of the change, the other bondholders will follow suit.
BAA needs 75% of bondholders in each of its nine tranches of bonds to agree to the deal so it can go ahead. If enough bondholders agree, the newspaper reports that the new bonds will be issued on August 14.
Ferrovial is keen to convince bondholders to agree to its plans as a recent £7.65 billion finance package from Citigroup, Royal Bank of Scotland, HSBC and Santander for airport redevelopment depends on the bond restructuring going ahead.
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