NAD Receives Project Finance Magazine Award

Tuesday, 09 March 2010 00:00 News Editor
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The Nassau Airport Development Company (NAD) has received Project Finance Magazine's Latin America Project Bond Deal of the Year award for 2009, based on it securing the $265 million needed to finance the first phase of the Lynden Pindling International Airport's (LPIA) redevelopment.

NAD executives this week travelled to New York to accept the award on behalf of LPIA.

Project Finance Magazine, a subsidiary of Euromoney Magazine looked at the airport management company's ability to be innovative, show best practice, risk mitigation and problem solving skills during the negotiations over the $265 million financing.

According to the magazine's website, the evaluation team took into consideration the overall world economic climate when selecting this year's recipients.

"Since the liquidity crunch of 2008...we have judged all deals in the context of the lending climate at the time of financial close," Project Finance Magazine said.

Stewart Steeves, vice-president of project development and NAD's former vice-president of finance and chief financial officer, spearheaded the negotiations.

"We were able to raise $40.1 million in Bahamian dollars, $194.9 million in US dollars and $30 million available in either Bahamian or US dollars for our expansion project," Mr Steeves said. "Once the new terminal opens in Spring 2011, we will seek subsequent funding for stages two and three."

A total of 16 investors and lenders, along with NAD's sole shareholder, the Government, provided the capital to begin work on stage one. Funding is broken down into three segments: a $153 million revolving credit facility, a $42 million senior note (bond) facility and a $70 million subordinated participating debt facility.

Stage one of the airport expansion project includes construction of a 247,000 square foot US Departures Terminal and Pier, about one million square feet of asphalt apron, expanded parking facilities and new roadways.

NAD finalised funding in March 2009, and began construction on the new terminal in August 2009.

Source: The Tribune