Grupo Aeroportuario del Pacifico Announces Long-Term Debt Financing at Montego Bay Airport

Rhea-AI Summary

Grupo Aeroportuario del Pacífico (PAC) announced a loan agreement for US$60 million with The Bank of Nova Scotia for its Montego Bay Airport operations. The funding will support the airport's Capital Development Program and corporate purposes. The first drawdown of US$30 million occurred on September 3, 2020. The loan has a 5-year term with a possible 2-year extension, carrying a monthly interest rate of Libor plus 310 basis points. The company operates 12 airports in Mexico and has interests in Jamaican airport facilities.

Positive

• Secured a US$60 million loan for capital development and corporate purposes.
• First drawdown of US$30 million completed successfully.
• Loan terms include a potential 2-year extension, providing flexibility.

Negative

• Loan's interest rate at Libor plus 310 basis points may increase costs.
• A portion of principal (10%) due at the 54th month may strain cash flow.

GUADALAJARA, Mexico, Sept. 04, 2020 (GLOBE NEWSWIRE) -- Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE: PAC; BMV: GAP) (the “Company” or “GAP”) announced that on September 3, 2020 its subsidiary MBJ Airports Limited (“MBJA”) signed loan agreements with The Bank of Nova Scotia Jamaica Limited and The Bank of Nova Scotia, which were duly formalized today. The loan proceeds will be used to finance the airport’s Capital Development Program, as well for general corporate purposes. The loan amount of US$60.0 million is available for disbursement up to twenty-four months from the closing date. 

Today Montego Bay Airport made the first drawdown of US$30.0 million.

The loan has a 5-year term with a 2-year optional extension for up to US$54.0 million, with a monthly interest rate of Libor plus 310 basis points and principal payment of 10% due at the 54^th month and the 90% due upon maturity. There is a disbursement fee of 50 basis points payable at closing plus a commitment fee of 55 basis points payable quarterly on any undrawn balance.

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 Concesiones 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 operation of the Norman Manley International Airport in Kingston, Jamaica. In October 2018, GAP entered into a concession agreement for the operation of the Norman Manley International Airport 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 actually 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 may involve criminal conduct or violations. The telephone number in Mexico, facilitated by a third party that is in charge of collecting these complaints, is 01 800 563 00 47. The web site is www.lineadedenuncia.com/gap. GAP’s Audit Committee will be notified of all complaints for immediate investigation.

IR Contacts:
Saúl Villarreal, Chief Financial and Administrative Officer	svillarreal@aeropuertosgap.com.mx
Alejandra Soto, IR and Financial Planning Manager	asoto@aeropuertosgap.com.mx
Gisela Murillo, Investor Relations	gmurillo@aeropuertosgap.com.mx / +523338801100 ext. 20294
Maria Barona, i-advize Corporate Communications	mbarona@i-advize.com

FAQ

What is the purpose of Grupo Aeroportuario del Pacífico's recent loan agreement?

The loan is intended to finance the airport's Capital Development Program and for general corporate purposes.

How much is the loan amount secured by Grupo Aeroportuario del Pacífico?

The secured loan amount is US$60 million.

When was the first drawdown of the loan made by Grupo Aeroportuario del Pacífico?

The first drawdown of US$30 million was made on September 3, 2020.

What is the interest rate on the loan taken by Grupo Aeroportuario del Pacífico?

The loan carries a monthly interest rate of Libor plus 310 basis points.

What is the term of the loan agreement for Grupo Aeroportuario del Pacífico?

The loan has a 5-year term with a possible 2-year extension.