Grupo Aeroportuario del Pacifico Announces Credit Line Refinancing for Ps. 1.5 Billion

Rhea-AI Summary

Grupo Aeroportuario del Pacífico (NYSE: PAC; BMV: GAP) has refinanced a maturing credit facility with Banco Nacional de México, S.A. (Citibanamex) for Ps. 1.5 billion. The new agreement extends the maturity by 18 months with interest payable monthly at a variable rate of TIIE-28 plus 24 basis points and a principal payment due on December 5, 2025. GAP operates 12 airports in Mexico's Pacific region and holds stakes in airports in Jamaica. GAP is listed on both the New York and Mexican Stock Exchanges.

Positive

• Refinancing extends the maturity of the credit facility by 18 months.
• Interest rate set at a variable rate of TIIE-28 plus 24 basis points, which may be favorable if interest rates remain low.
• No fees associated with the refinancing agreement.
• Principal payment deferred until December 5, 2025, providing financial flexibility.

Negative

• Obligation to pay interest monthly, which could affect cash flow.
• Exposure to variable interest rates, potentially increasing costs if rates rise.
• Large debt of Ps. 1.5 billion could be a concern for investors.

Insights

Financial Analyst

Grupo Aeroportuario del Pacífico's (GAP) refinancing of a Ps. 1.5 billion credit line with Citibanamex is significant for several reasons. Firstly, extending the maturity by 18 months provides short-term liquidity relief, allowing the company to use available cash for operational needs or potential investments without the immediate pressure of repaying such a large amount. The interest rate, pegged at TIIE-28 plus 24 basis points, is competitive in the current financial climate, suggesting GAP has a solid standing with its lenders.

Short-term, this move could positively impact GAP's financial stability and operational flexibility. However, the long-term implications depend on how the company manages the debt and any potential changes in interest rates. Variable interest rates can introduce uncertainty, especially if rates rise significantly, leading to higher interest expenses over time.

For retail investors, this refinancing demonstrates proactive financial management, potentially reducing the risk of liquidity crises, which could stabilize or even enhance stock value in the short term. However, they should remain cautious of the long-term interest rate risks and the company's future ability to generate sufficient cash flow for the principal repayment in December 2025.

Market Research Analyst

The refinancing deal highlights GAP's active management of its debt portfolio, which is particularly important given the economic volatility often seen in emerging markets like Mexico. By securing this extension, GAP ensures it can weather short-term uncertainties without compromising its operational budgets or delaying key infrastructure projects at its airports.

While this move underscores financial prudence, it's important to monitor how this financial maneuver impacts GAP's investment in airport facilities and services. Any reduction in capital expenditure could affect the quality of service and long-term growth potential, particularly in a competitive industry where infrastructure quality is a significant differentiator.

Investors should look at broader market trends, including passenger traffic volumes, tourism recovery post-pandemic and regulatory changes in the aviation sector, as these will directly influence GAP's revenue streams and its ability to meet future debt obligations.

GUADALAJARA, Mexico, June 07, 2024 (GLOBE NEWSWIRE) --  Grupo Aeroportuario del Pacífico, S.A.B. de C.V., (NYSE: PAC; BMV: GAP) (“the Company” or “GAP”) announces that today completed the refinancing of the credit facility that matured today with Banco Nacional de México, S.A., (“Citibanamex”) for Ps. 1.5 billion, extending the maturity by 18 months. The interest will be payable monthly at a variable rate of TIIE-28 plus 24 basis points, without fees, and principal payment on December 5, 2025.

Company Description

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAP) operates 12 airports throughout Mexico’s Pacific region, including the major cities of Guadalajara and Tijuana, the four tourist destinations of Puerto Vallarta, Los Cabos, La Paz and Manzanillo, and six other mid-sized cities: Hermosillo, Guanajuato, Morelia, Aguascalientes, Mexicali, and Los Mochis. In February 2006, GAP’s shares were listed on the New York Stock Exchange under the ticker symbol “PAC” and on the Mexican Stock Exchange under the ticker symbol “GAP”. In April 2015, GAP acquired 100% of Desarrollo de Concessioner Aeroportuarias, S.L., which owns a majority stake in MBJ Airports Limited, a company operating Sangster International Airport in Montego Bay, Jamaica. In October 2018, GAP entered into a concession agreement for the Norman Manley International Airport operation in Kingston, Jamaica, and took control of the operation in October 2019.

This press release may contain forward-looking statements. These statements are statements that are not historical facts and are based on management’s current view and estimates of future economic circumstances, industry conditions, company performance, and financial results. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations, and the factors or trends affecting financial condition, liquidity, or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends, or results will occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

^{In accordance with Section 806 of the Sarbanes-Oxley Act of 2002 and Article 42 of the “Ley del Mercado de Valores”, GAP has implemented a “whistleblower” program, which allows complainants to anonymously and confidentially report suspected activities that involve criminal conduct or violations. The telephone number in Mexico, facilitated by a third party responsible for collecting these complaints, is 800 04 ETICA (38422) or WhatsApp +52 55 6538 5504. The website is www.lineadedenunciagap.com or by email at denuncia@lineadedenunciagap.com. GAP’s Audit Committee will be notified of all complaints for immediate investigation.}

Alejandra Soto, Investor Relations and Social Responsibility Officer	asoto@aeropuertosgap.com.mx
Gisela Murillo, Investor Relations	gmurillo@aeropuertosgap.com.mx/+52 33 3880 1100 ext. 20294

FAQ

What is the amount of the credit facility Grupo Aeroportuario del Pacífico refinanced?

Ps. 1.5 billion.

When is the new maturity date for Grupo Aeroportuario del Pacífico's refinanced credit facility?

December 5, 2025.

Which bank did Grupo Aeroportuario del Pacífico refinance its credit facility with?

Banco Nacional de México, S.A. (Citibanamex).

What is the interest rate for Grupo Aeroportuario del Pacífico's refinanced credit facility?

Variable rate of TIIE-28 plus 24 basis points.

What stock symbol does Grupo Aeroportuario del Pacífico trade under on the NYSE?

PAC.