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Auckland Airport Fixed Rated Bond Offer Closes

Published: Wed 2 Nov 2005 01:29 PM
2 November 2005
Auckland Airport Fixed Rated Bond Offer Closes
Auckland International Airport Limited's ("AIAL") offer of up to $150 million of 7 and 10 year fixed rate bonds ("Bonds") closed yesterday fully subscribed.
There was strong interest in both the 7 year and 10 year bonds. AIAL will issue $100 million of 10 year bonds with the remaining $50 million to be issued as 7 year bonds. This is consistent with AIAL's objective of lengthening its debt maturity profile.
The proceeds from the offer will be used to repay a portion of the $200 million bridge facility arranged for the special dividend paid to shareholders on 5 August.
Robert Sinclair, chief financial officer of AIAL, said "We are very pleased with the level of interest in the Auckland Airport bonds, particularly from New Zealand fixed interest institutional investors who strongly supported the 10 year issue.
As the Airport continues to invest in expanding its capacity, the domestic capital markets will continue to be an important source of debt finance for the company. As such, we were keen to ensure strong participation in this issue."
The interest rate payable on the bonds will be determined on 3 November at the sum of the margin and the relevant swap rate. The margins were set on 31 October at:
Tranche / Series Maturity Date Margin No. 1 / 12 7 November 2012 0.31% No. 1 / 15 9 November 2015 0.42%
ENDS

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