MIC Announces Successful Refinancing and Amendment of Debt Facilities at Atlantic Aviation, International-Matex Tank Terminals
December 06 2018 - 5:15PM
Business Wire
- Seven-year, $1.025 billion term loan
and five-year, $350 million revolving credit facility support
continued growth at Atlantic Aviation; a portion of proceeds
expected to fund repayment of MIC level convertible notes due July
2019
- Revolving credit facility and tax
exempt debt at IMTT extended by three and one-half years; coupon on
tax exempt debt reduced by approximately 40bps
Macquarie Infrastructure Corporation (NYSE:MIC) announced that
it has completed the refinancing of the primary debt facility of
its Atlantic Aviation (“Atlantic”) subsidiary and extended the
maturity of two of three facilities supporting its
International-Matex Tank Terminals (“IMTT”) subsidiary. The
Atlantic and IMTT transactions closed on December 6 and December 5,
respectively.
“We are pleased with the support from existing and new lenders
in the refinancing of our two largest businesses,” said Christopher
Frost, chief executive officer of MIC. “The successful refinancing
and amendment of these debt facilities further de-risks MIC by
extending maturity dates, diversifying funding sources and
providing a permanent solution to the refunding of our holding
company level convertible notes that mature in July 2019. Together
with the sale of BEC and other, smaller, non-core businesses in
2018, we have made substantial progress relative to our strategic
priority of increasing the Company’s balance sheet strength and
financial flexibility.”
The Atlantic refinancing replaces an existing term loan having
an amortized principal balance of $375 million at closing and a
$350 million revolving credit facility (undrawn), both with October
2021 maturities. The new facility consists of a term loan of $1.025
billion maturing in December 2025 and a $350 million revolving
credit facility ($35 million drawn at closing) maturing in December
2023.
The new loan bears interest at a rate of LIBOR plus 375 basis
points. The revolving credit facility is subject to a
leverage-based pricing grid with an opening pricing of LIBOR plus
225 basis points. The all-in cost of the loan will be reduced to
approximately 5.6% by a 1.0% LIBOR rate cap on a notional $400
million of Atlantic debt.
In addition to repayment of the existing term loan, $350 million
of loan proceeds are expected to be used to repay a like amount of
holding company level convertible notes that mature in July of
2019. At closing, stand-alone leverage (net debt to trailing twelve
month EBITDA at September 30) at Atlantic was approximately 4.0
times.
The IMTT amendment resulted in an extension of the maturity date
for each of the business’ $600 million revolving credit facility
and $509 million of tax exempt debt by three and a half years to
December of 2023 and 2025, respectively. At closing, stand-alone
leverage (net debt to trailing twelve month EBITDA at September 30)
at IMTT was approximately 3.6 times.
Both of IMTT’s revolving credit and tax exempt facilities are
subject to either a ratings based or leverage-based pricing grid.
At closing, the pricing on the revolving credit facility was LIBOR
plus 150 basis points, while pricing on the tax exempt debt was
based on a formula of 80% times the sum of LIBOR plus 195 basis
points. The pricing of the tax exempt debt is approximately 40
basis points lower than the pricing prior to the refinancing.
Including the refinancing and amendment of the Atlantic and IMTT
facilities, the weighted average maturity of all debt facilities
across MIC has increased to 6.3 years from the 5.1 years at October
30 reported in the Company’s financial results for the third
quarter of 2018.
About MIC
MIC owns and operates a diversified group of businesses
providing basic services to customers in the United States. Its
businesses consist of a bulk liquid terminals business,
International-Matex Tank Terminals, an airport services business,
Atlantic Aviation, entities comprising an energy services,
production and distribution segment, MIC Hawaii, and entities
comprising a Contracted Power segment. For additional information,
please visit the MIC website at www.macquarie.com/mic. MIC-G
MIC is not an authorized deposit-taking institution for the
purposes of the Banking Act 1959 (Commonwealth of Australia). The
obligations of MIC do not represent deposits or other liabilities
of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not
guarantee or otherwise provide assurance in respect of the
obligations of MIC.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181206005980/en/
InvestorsJay A. DavisInvestor RelationsMIC+1
212-231-1825
MediaMelissa McNamaraCorporate CommunicationsMIC+1
212-231-1667
Macquarie Infrastructure (NYSE:MIC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Macquarie Infrastructure (NYSE:MIC)
Historical Stock Chart
From Sep 2023 to Sep 2024