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Newcastle Airport negotiates £233m refinancing deal

Newcastle Airport has negotiated a new term loan facility of £233m in a move to refinance its bank debt, reducing future interest costs.

The airport’s previous arrangements were arranged in 2012, since then it has committed approximately £40m in capital developments such as radar replacement and improvements to customer facilities and its retail offering.

The new loan deal is split into tranches between seven and twenty years, which will offer enhanced protection against future interest rate rises and ensure continued investment to improve customer facilities and infrastructure, including a planned runway resurfacing.

Following the refinancing a total dividend of £43m will be split between each of the Local Authority shareholders and AMP Capital. It is the first time since 2013 that shareholders have received a dividend.

The process has been carried out with the Airport’s advisors, RBS Advisory (Financial) and Allen & Overy (Legal), and with support from AMP Capital and the Local Authority shareholders.

Financing is being provided by a consortium of lenders which includes RBS, Commonwealth Bank of Australia, National Australia Bank Limited, ING Wholesale Banking, Development Bank of Japan (DBJ) and MetLife Investments.

Nick Jones, Interim Chief Executive of Newcastle International, said: “We are pleased to announce that our refinancing project has been completed.

“We have created a platform which allows the airport to continue to deliver the facilities, infrastructure and connectivity that the North East needs.

“The project will help secure the long term success of the airport by maintaining its sound financial footing and provides a new capital expenditure facility, which is available to support our growth plans.”

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