Officials at Nassau Airport Development Co (NAD) confirm they have received final funds and concluded all financing for the airport redevelopment project at Lynden Pindling International Airport.
On August 30, the airport operators received the remaining $90 million of the $225 million debt agreement, bringing the final round of funding to a close for the historic project valued at $409.5 million.
In May, NAD received $135 million.
With less than a month to go before the opening of the 226,000 sq ft International Arrivals Terminal, NAD is looking forward to concluding a project the airport management company began more than five years ago.
“Receiving the final funds is significant as we move forward with the terminal build out,” says Stewart Steeves, president and chief executive officer at NAD.
“Over the past five years, we’ve worked closely with our bankers and investment team to determine the best strategies to secure proper funding for a project of this magnitude. We’re proud of what we’ve delivered so far and extremely pleased with the public-private partnership formed between our management team and the government of The Bahamas.”
A total of $877 million has been raised since 2007 to fund the project in six transactions (both financings and refinancing). The capital structure included a combination of senior debt and subordinated participating debt–a structure that allowed rate increases associated with the project to be minimized.
The unique financing structure secured was recognized with industry awards including the Project Bond Finance Deal of the Year Award from Project Finance Magazine in 2009 and Jane’s Airport Finance Deal of the Year in 2010.
NAD’s financing structure is based on maintaining competitive rates at LPIA, ensuring that no government guarantees are needed and maintaining an investment grade credit rating. The overall financing structure also depends on the company’s ability to continue to grow its commercial revenue and manage its competitive rate programme.