RNS Number : 4607C
13 November 2009
BAA to strengthen the financial structure of its London airports group
BAA today announces a proposed £500 million equity injection into its London airports group.
The injection will consist of £200 million of new equity from shareholders and £300 million from BAA Airports Limited and FGP Topco Limited, the ultimate holding company of BAA, which is jointly owned by BAA's three controlling shareholders. The funding will be used to pay down debt, strengthen the group's medium-term financial ratios and facilitate its access to the capital markets.
The £300 million equity injection from BAA Airports Limited and FGP Topco Limited has been approved by the relevant boards. The £200 million of new equity from shareholders requires the formal approval of BAA's three controlling shareholders.
The injection furthers BAA's strategy of developing a long-term platform to finance its rolling programme of investment to upgrade its London airport facilities and improve service to customers.
The move follows October's announcement of the Department for Transport's measures to strengthen the financial resilience of major airports, which removed key uncertainties for BAA and its creditors; the sale of Gatwick, the net proceeds of which will be used by BAA to pay down debt; and the encouraging improvement in recent passenger traffic figures, particularly at Heathrow.
For further information please contact: -
Media enquiries Malcolm Robertson 07788 567680
Investor enquiries Andrew Efiong 020 8745 2742
Andrew Mitchell or Don Hunter 020 7251 3801
Notes to editors: -
The £300 million equity injection from BAA Airports Limited and FGP Topco Limited is partly funded by finance raised against FGP Topco's holding of £225 million of BAA Funding Limited bonds. FGP Topco has informed BAA that it expects in due course to sell the bonds in an orderly fashion that does not impact on a stable market and that it may seek to co-ordinate the sale with any new issuance by BAA Funding Limited.
Of the £500miliion, £260 million will be injected into BAA (SP) Ltd today. The remaining £240million is expected to be injected in January 2010.
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