In this market, any deal is news. But the BAA deal is big news. It is a complex refinancing involving the separation of regulated and non-regulated assets and the establishment of a single funding vehicle for BAA under which it can tap various sources of finance.
"I don’t think that I have ever been involved in a transaction presented with so many challenges," says Steve Curtis, partner at Clifford Chance, which advised the arranging banks. "There were so many constituencies that needed to agree: shareholders, existing bondholders, junior lenders, new senior lenders, rating agencies and pension trustee – which was an enormous undertaking even before you consider the impact of the credit markets, the price review for the London airports, the market investigation and other regulatory matters."
The deal involves the establishment of a £50 billion ($90.1 billion) multi-currency programme (BAA Funding) under which BAA has access to both the...
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