Perth Airport secures $770m refinancing

Perth Airport has completed a refinancing through bank facilities and bonds worth $770 million, a few days after announcing a planned expansion of facilities worth $8 million.

Airport operator Westralia Airports Corporation plans to spend $120 million on aeronautical infrastructure, $100 million on property and estate development and $41 million on commercial development over the next four years.

Westralia announced on Tuesday that it had budgeted $8 million for the development of infrastructure for regional charter services as well as fly-in/fly-out operations taking workers to mines across Western Australia.

The full text of a Perth Airport announcement is pasted below

Perth Airport has today completed the largest refinancing in its history, as it refocuses its business to meet sustained and unprecedented growth.

The $770 million refinancing by the airport's operator, Westralia Airports Corporation, is a mix of bank facilities - provided by the Commonwealth Bank and Westpac - and seven and 10 year AAA credit wrapped bonds, wrapped by FSA and distributed by the Commonwealth Bank.

Perth Airport's Chief Financial Officer, Mr Wayne Ticehurst, said the changes allow the airport to restructure its existing debt and provide a facility to fund future capital expenditure.

"This refinancing simplifies our current arrangements to give us more flexibility and more room to grow," he said.

"As a secure business with strong returns, it's also about seeking more favourable debt terms compared with those available when the leasehold on the airport was purchased in 1997."

Perth Airport has experienced cumulative passenger growth of 10 per cent per annum between 2000-01 and 2005-06. This growth, combined with diversification into property, has seen operating revenue rise from $76.8 million to $136.4 million over the same period.

Mr Ticehurst said aeronautical charges made up the largest percentage of the airport's revenue (36 per cent in 05-06) followed by property (32 per cent) and commercial (31 per cent) interests.

"We have forecast $275 million in capital expenditure between now and 2010 to invest in the capacity of these three areas of our business," he said. Among the planned projects are:

• $120 million on aeronautical infrastructure, including extending taxiways, new aerobridges, upgrading baggage screening and improving terminals;
• $100 million on property and estate development, including an office park, warehouses, new roads and an electrical substation; and
• $41 million on commercial development including new retail outlets inside terminals, more car parking and better car rental facilities.

"Perth Airport is in a unique position to capitalise on, and to help drive, Western Australia's boom. As well as providing access to domestic and international air networks, we're also providing access to 700 hectares of land at a time when business is looking to expand," added Mr Ticehurst.

"This refinancing will help in our goal of profitable and responsible growth of the airport franchise, and the ongoing provision of a safe, secure environment for the travelling public."