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FSA Guarantees Sydney Airport Refinancing
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES, CANADA OR JAPAN
Sydney, December 18, 2006 - Financial Security Assurance (FSA) has guaranteed A$659 million of 20-year medium term notes (MTNs) issued by the Sydney Airport Group, which holds the long-term operating lease on Sydney Airport. The MTNs are partly paid securities with the majority of funding in October 2007 to replace bonds maturing then. The issue is part of a major realignment of the airport's capital structure involving the issuance of A$2.7 billion of bonds and A$959 million of new bank debt facilities. Goldman Sachs JBWere Capital Markets Limited acted as lead manager for the FSA-guaranteed notes.
The FSA-insured bonds are rated Aaa/AAA/AAA based on FSA's guaranty of timely payment of principal and interest.
"Given the large scale of the airport's refinancing program, the Sydney Airport Group needed broadly diversified funding sources, and wrapped bonds were therefore an important part of the equation," said Andrew Bevan, a director in FSA's Sydney office. "FSA provided the issuer the flexibility to issue wrapped, delayed drawn bonds at attractive current rates without incurring early redemption costs for the bonds to be refinanced."
The senior debt is secured by fixed and floating charges over the assets and undertakings of the Sydney Airport Group and by a leasehold mortgage over the airport lease. The main gateway to Australia, Sydney airport accommodates more than 29 million passengers a year, including almost half of Australia's international visitors and approximately a third of its domestic passengers.
About FSA
Financial Security Assurance Holdings Ltd. (FSA Holdings) is a New York-headquartered holding company whose subsidiaries provide financial guarantees in both the public and private sectors around the world. Its principal operating subsidiary, Financial Security Assurance Inc., is a leading guarantor of municipal bonds, infrastructure financings and asset-backed securities. Financial Security Assurance (U.K.) Limited is a U.K.-licensed subsidiary of Financial Security Assurance Inc. Guarantees issued by these subsidiaries carry the highest ratings available, from Fitch Ratings, Moody's Investors Service, Inc., Standard & Poor's Ratings Services and Rating and Investment Information, Inc. FSA Holdings is a member of the Dexia group, the world leader in public finance. For additional information, visit www.fsa.com.
THIS PRESS RELEASE IS NOT AN OFFER FOR SALE IN THE UNITED STATES. SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933