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

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of