Greater Toronto Airports begins pledged bonds consent solicitation

Chicago, June 28 – Greater Toronto Airports Authority has called a bondholder meeting for the series 1997-C pledged bonds to consider amendments to the trust indenture governing the issue, according to a press release.

The authority is seeking two amendments.

The first would temporarily relieve the authority from complying with the rate covenant under the trust indenture for its 2022 fiscal year. The relief was previously granted to the authority for the 2020 and 2021 fiscal years. The relief is being sought in connection with diminished passenger activity due to the Covid-19 pandemic.

Additionally, the second amendment would modify the limitation on permitted guarantees and investments under the trust indenture and allow the authority to create any guarantee or to make or maintain any investment, provided that the aggregate cost basis amounts to no more than the greater of 3% of the authority’s total assets and $200 million. The amendment would permit the authority to prudently deploy a limited, non-material amount of capital in support of growth and revenue diversification.

The virtual meeting is scheduled for 11 a.m. ET on July 27.

The record date for bondholders is 5 p.m. ET on June 23.

If bondholders representing not less than 66 2/3% of the principal amount of notes deliver valid consents and proxies in favor of the proposed amendments by 5 p.m. ET on July 16, the election deadline, the extraordinary resolution will have been passed and the meeting canceled.

Bondholders who participate, no matter what their vote, will receive a voting fee of $0.50 per $1,000 principal amount of notes.

If there is no meeting because the votes necessary have been obtained by the meeting deadline, then no fee will be payable to bondholders who did not deliver valid consents and proxies before the election deadline.

BMO Nesbitt Burns Inc. (647 250-1459, 647 760-2473), CIBC World Markets Inc. (416 594-8515) and RBC Dominion Securities Inc. (416 842-6311) as joint solicitation agents.

D.F. King Canada is the information agent (800 884-4590, 416 682-3825, inquiries@dfking.com) and AST Trust Co. (Canada) is the tabulation agent in connection with the consent solicitation and meeting.

GTAA is the operator of Toronto Pearson International Airport.

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