TIDM88BX TIDM10FX
RNS Number : 1748G
Heathrow
25 May 2017
News Release Heathrow Finance plc.
The Compass Centre, Nelson
Road,
Hounslow, Middlesex TW6
2GW
T: +44 (0)20 8745 7224
E: investors@heathrow.com
W: heathrow.com
Not for release, publication or distribution in whole or in
part, directly or indirectly, in or into the United States of
America
25 May 2017
Strong investor appetite for GBP275 million Heathrow bond
On 24 May 2017, Heathrow Finance plc ("Heathrow Finance")
successfully placed a GBP275 million bond with a March 2027
maturity and a fixed coupon of 3.875%.
The transaction generated an initial order book in excess of
GBP1.8 billion from over 200 investors, enabling the bond to be
priced inside initial price expectations and with a coupon
materially lower than the 5.75% coupon achieved on a similar
maturity bond completed in October 2014. The transaction was
unusual in attracting significant interest from institutions
outside the UK, in continental Europe, once again underlining the
benefit of Heathrow's ongoing global fixed income investor
engagement programme and demonstrating the scale of investor
interest in the Heathrow credit as the airport prepares the
groundwork for its expansion programme.
The proceeds of the bond issue will enable Heathrow to complete
the final stage of simplifying its debt financing arrangements so
that the Heathrow group will no longer have debt subordinated to
that held at Heathrow Finance and should provide a more liquid
financing platform at Heathrow Finance level in the future.
Andrew Efiong, Heathrow's Director of Treasury, said: "We are
very pleased with the continued strong support for Heathrow in the
debt capital markets. This transaction successfully extends our
maturity profile at this level of the capital structure and the mix
of investors reflects continued market confidence in the Heathrow
credit.
"As the UK's global gateway, Heathrow gives investors around the
world a unique opportunity to invest in Britain's premier
infrastructure asset. With a unique mix of premium and transfer
passengers, as well as the airport's strength in handling over 30%
of the UK's non-EU exports, Heathrow has the in-built resilience
valued by fixed income investors."
Notes
Completion of this transaction means that Heathrow Finance has
raised over GBP600 million in little more than the last 12 months
in both bond and loan format. This financing has been supported by
banks, institutional lenders and public bond investors from the UK,
continental Europe, North America, Asia and Australia,
demonstrating the global appeal of Heathrow to fixed income
investors.
Consistent access to finance on this scale is enabled by
Heathrow's multi-billion global debt financing platform, which has
been critical to funding Heathrow's transformation over the last
decade or so. And this platform will continue to be crucial in
financing significant further investment at Heathrow in the years
ahead, supported by the credibility of being the largest wholly
privately financed airport globally.
Barclays, ING and JP Morgan acted as Joint Global Co-ordinators
and Joint Bookrunners on this bond issue whilst Bank of America
Merrill Lynch, Credit Suisse, ICBC and RBC Capital Markets acted as
Joint Bookrunners.
For investor enquiries please contact Christelle Lubin, Investor
Relations on +44 20 8745 0811
This announcement does not contain or constitute an offer to
sell or issue or a solicitation of an offer to buy or subscribe
for, securities to any person in Australia, Canada, Japan or the
United States or in any jurisdiction in which such offer or
solicitation is unlawful prior to registration or qualification
under the relevant securities laws of any such jurisdiction and is
not intended to provide the basis for any credit or other
evaluation of the securities.
The notes may not be offered or sold in the United States or to,
or for the account or benefit of U.S. Persons (as defined in
Regulation S under the Securities Act) absent registration or
exemption from registration under the U.S. Securities Act of 1933,
as amended (the "Securities Act"). In particular, the notes have
not been, and will not be, registered under the Securities Act, and
may not be offered, sold, resold, transferred, delivered or
distributed, directly or indirectly directly or indirectly within
the United States except pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the
Securities Act and applicable state or local securities laws.
Unless an exemption under the relevant securities laws is
applicable, the notes may not be offered, sold, resold,
transferred, delivered or distributed, directly or indirectly, in
or into Australia, Canada, or Japan, or to, or for the account or
benefit of, any national, resident or citizen of Australia, Canada,
or Japan, or any other jurisdiction if to do so would breach any
applicable law, or require registration thereof in such
jurisdiction. No public offering of the notes is being made in the
United States. In addition, any relevant securities registration or
other clearances under the applicable securities laws have not been
and will not be made or obtained with or from the relevant
authorities in Australia, Canada, Japan or any other jurisdiction
except the United Kingdom.
This communication is not being distributed to or directed at
persons other than persons whose ordinary activities involve them
in acquiring, holding, managing or disposing of investments (as
principal or agent) for the purposes of their businesses or who it
is reasonable to expect will acquire, hold, manage or dispose of
investments (as principal or agent) for the purposes of their
businesses where the issue of the notes would otherwise constitute
a contravention of section 19 of the Financial Services and Markets
Act 2000 ("FSMA") by us. In addition, no person may communicate or
cause to be communicated any invitation or inducement to engage in
investment activity (within the meaning of section 21 of FSMA)
received by it in connection with the issue or sale of the notes
other than in circumstances in which section 21(1) of FSMA does not
apply to us.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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