Auckland Airport refinances $300 million of bank facilities

Thursday 7th April 2016

Auckland International Airport, the country’s largest airport operator, has established $200 million in standby facilities to refinance $115 million in existing bank facilities, along with another $100 million to pay for capital expenditure.

The existing facilities are set to mature on April 30. Of the new undrawn standby facilities, $125 million is provided by Bank of New Zealand and $75 million by Westpac Banking Corp, both maturing in April 2019.

Commonwealth Bank of Australia will provide an additional two-year drawn facility of $100 million, which the airport says will partly fund its capital expenditure programme.

In October 2015, the airport updated its forecast capital expenditure for the 2016 financial year to between $230 million and $260 million as a result of growth in the business. That includes $135 million of aeronautical capital expenditure, an annual spend which is expected to continue around that level for the next few years.

The shares last traded at $6.42 and have gained 12 percent this year. The stock is rated an average 'sell' based on six analyst recommendations compiled by Reuters, with a median target price of $5.20.

(BusinessDesk)

BusinessDesk.co.nz

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