By Paul A. Harris
St. Louis, Nov. 2 - BAA (SH) plc priced a £325 million issue of senior secured notes due March 1, 2017 (Ba3//BB+) at par to yield 7 1/8% on Tuesday, according to a market source.
The yield printed at the tight end of the 7¼% area price talk.
The issue size came at the high end of the £250 million to £325 million offering range with which the company came into the market.
Morgan Stanley and the Royal Bank of Scotland were the joint global coordinators.
Morgan Stanley, the Royal Bank of Scotland, Barclays Capital, BNP Paribas, ING and Banco Santander were the joint bookrunners.
Proceeds will be used to refinance the remaining £465.8 million of BAA (SH)'s existing loan facility due 2011.
"This is the first time a U.K.-regulated business has been able to access finance for its holding company through the bond markets," Fred Maroudas, BAA's director of treasury, stated in a Tuesday press release.
"We are particularly pleased by our continuing ability to attract a wide variety of new investors," he added, noting that the deal was significantly oversubscribed, with orders from more than 150 existing and new investors spread equally between U.K. and non-U.K investors.
During the past 12 months, BAA has refinanced about £3 billion through a range of markets, Maroudas stated in the release.
London-based BAA, which operates London's Heathrow and Stansted airports, is owned by Spain's Grupo Ferrovial.
| Issuer: | BAA (SH) plc
|
| Amount: | £325 million
|
| Maturity: | March 1, 2017
|
| Securities: | Senior secured notes
|
| Global coordinators: | Morgan Stanley, Royal Bank of Scotland
|
| Bookrunners: | Morgan Stanley, Royal Bank of Scotland, Barclays Capital, BNP Paribas, ING, Banco Santander
|
| Coupon: | 7 1/8%
|
| Price: | Par
|
| Yield: | 7 1/8%
|
| Spread: | 504 bps
|
| Call protection: | Non-callable (make-whole provision at Gilts plus 50 bps)
|
| Trade date: | Nov. 2
|
| Settlement date: | Dec. 9
|
| Ratings: | Moody's: Ba3
|
| Fitch: BB+
|
| Price talk: | 7¼% area
|
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