Manchester Airport seeks consents to amend four series of bonds

By Sarah Lizee

Olympia, Wash., May 26 – Manchester Airport Group Funding plc announced a consent solicitation for holders of four series of its fixed-rate bonds, according to a notice.

The following notes are included in the consent bid:

• £450 million 4.75% bonds due 2034 (ISIN: XS1032630771);

• £360 million 4.125% bonds due 2024 (ISIN: XS1057530393);

• £300 million 2.875% bonds due 2039 (ISIN: XS1718393512); and

• £350 million 2.875% bonds due 2044 (ISIN: XS1991245017).

The group said that as part of its strategic response to Covid-19, it has implemented a financial strategy that includes a combination of over £480 million of cash mitigation measures over the next two years, together with £300 million of equity support from its shareholders.

The group said that given that EBITDA is expected to be at significantly reduced levels due to the outbreak, even with the shareholder subscription, the group agent expects that the group will breach the default ratios relating to the interest coverage ratio and leverage ratio in the current financial year. Therefore, the group said it is seeking the support of its secured creditors by means of a waiver in that regard.

The group’s strategy is to return back within compliance during the 2022 financial year.

In addition, the group said it is also proposing that the default ratios will be tested on Sept. 30, 2021 by reference to the EBITDA for the six months ended Sept. 30, annualized on a seasonal basis, which will be more reflective of prevailing trading conditions at the time.

Manchester Airport said that a group of secured creditors holding 55.69% of the outstanding amount of the bonds have indicated that they intend to vote in favor of the proposal.

The group is offering an instruction fee equal to 0.05% of the principal amount outstanding of bonds for which consents have been delivered.

The instruction fee deadline is 11 a.m. ET on June 16.

The bid will expire at 11 a.m. ET on June 25.

The solicitation agents are Barclays Bank plc (+44 20 3134 8515, eu.lm@barclays.com) and NatWest Markets plc (+44 20 7678 5282, liabilitymanagement@natwestmarkets.com). The tabulation agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, mag@lucid-is.com).

The airport company is based in the United Kingdom.

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