BAA Funding, the bond issuance vehicle of U.K. airport-operating company BAA, has raised $1 billion through a note issue, The Wall Street Journal reports. The 10-year senior secured note carries a risk premium of 200 basis points over Treasurys.
The proceeds are expected to be used to repay existing debt of BAA’s subsidiaries. The financing will also be used to build and repair terminals in Heathrow Airport. Citigroup, Royal Bank of Scotland, BBVA and BNP Paribas are leading the offering.
Click here for the story from The Wall Street Journal.