Auckland Airport commences USD740m equity raising

5 April, 2020

Auckland International Airport announced (06-Apr-2020) it is conducting an equity raising of up to NZD1.2 billion (USD740 million) to reinforce its balance sheet and ensure it remains well capitalised during a period of strict border controls and significantly reduced passenger numbers, with the aim to be well positions for a post coronavirus recovery. Key details include:

  • Undertaking NZD1000 million (USD588.4 million) fully underwritten placement and a NZD200 million (USD117.7 million) share purchase plan;
  • Expecting a negative impact from coronavirus to continue for some time and is moving to strengthen its balance sheet;
  • Placement proceeds provide pro forma adjusted liquidity of approximately NZD1258 million (USD740.3 million) to meet all operating, investing and financing cash flow obligations under a range of recovery scenarios;
  • Secured support from lenders, including covenant waivers from its banking group and extensions to all bank facilities due to mature before 31-Dec-2021;
  • Equity raising and debt amendments are in addition to the already announced measures to manage cash flow, and reduce operating expenditure and capital spend;
  • Auckland Airport's priority continues to be the safety and wellbeing of its people, travellers, customers and stakeholders, while mitigating the impact of coronavirus on its operations, with the aim of ensuring that it remains well positioned for a post coronavirus recovery;
  • The airport remains committed to completing a number of infrastructure projects focused on essential safety, asset replacement, maintenance and resiliency, including the planned runway pavement replacement. [more - original PR]