Hedge Fund Approves British Airport Funding Deal

Aug 6 2008 | 9:27am ET

BAA, the British airports operator that runs London’s Heathrow Airport, has managed to win the support of hedge fund Polygon Investment Managers for a new funding structure.

Polygon, which owns slightly more than 25% of BAA’s 2031-dated bonds, had been withholding its votes in favor of the plan in an effort to win further concessions. BAA, which also operates London’s Gatwick and Stansted airports, as well as four airports in Scotland, needed at least 75% approval from bondholders in each series of bonds.

BAA said today that it had won “overwhelming” support from holders of all nine series of bonds. It is unclear what, if any, additional concessions were made to win over Polygon.

Under the plan, BAA will “migrate” the £4.7 billion in bonds to new investment-grade debt backed by the three London Airports and its shuttle train to downtown London, Heathrow Express.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of