Gatwick offers holdco bond to shore up opco funds

By Owen Sanderson
29 Mar 2021

Gatwick Airport is marketing a holding company bond, raising funds to be used for general corporate purposes in the operating company. Unlike Heathrow, Gatwick had yet to access subordinated funding from outside its opco, instead relying on class A secured debt from within its ring-fenced Gatwick Funding vehicle.

But, like all airports, it has had a terrible year, and expects 2021 to be tough as well. Passenger numbers in the fourth quarter were down 93% on the prior year. It’s expecting to be 16 times levered at the end of this year. It has arranged covenant ...

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