GIP to replace bank debt with bonds

24.02.10

Global Infrastructure Partners (GIP), the owner of Gatwick, is to issue bonds later this year to refinance bank debt used to buy the hub. GIP partner Michael McGhee told the ACI Airport Economics and Finance conference in London yesterday: ‘We plan to replace short-term bank debt with long-term bonds.’

The New York-based private-equity firm borrowed £740m from a bank syndicate to help finance its £1.51bn acquisition of Gatwick in December. Earlier this month it agreed to sell stakes in the airport to the Abu Dhabi Investment Authority and to Korea’s National Pension Service, part syndicating the equity part of the acquisition. The bonds to refinance the debt part would be issued later this year ‘if market conditions are right,’ and will be sold in Gatwick’s name, not GIP’s, Mr McGhee said.

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