MAG's Stansted buy backed with loan of 1.5 billion pounds: sources
ReutersLONDON--Manchester Airports Group's (MAG) 1.5-billion-pound (US$2.4 billion) acquisition of London's Stansted airport is being backed with a 1.2-billion-pound club loan from a group of 13 banks, banking sources said on Monday.
January 23, 2013, 12:01 am TWN
The investment grade five-year facilities are split between term loans and revolving credit facilities, the sources said.
Twelve of the banks committed just under 100 million pounds to the financing, while one bank committed around 50 million pounds, one of the sources said.
A portion of the loan is expected to be taken out by a bond, two of the sources said. The bond issue is expected within 12 to 18 months after close to give MAG time to make some progress in turning Stansted around before issuing bonds, another of the sources said.