Puerto Rico airport reaches close
Appointed last July, the consortium of Highstar Capital and Sureste Airports of Mexico has signed the financial details with the Puerto Rican government.
Financing for the upfront payment and terminal improvements is expected to materialise from $350m in bonds issued by the Royal Bank of Canada. Another $50m will be sourced from capital expenditure as well as a $10m revolving credit line. The two consortium members will split $327m in equity equally.
Aerostar made a $615m upfront payment to the Puerto Rico Ports Authority (PRPA) as part of the deal and this will be used to support regional airports on the island and pay for transaction costs.
The San Juan airport deal is a 50-year concession alongside airport terminal upgrades valued at $40m in the first five years of the contract.
In addition the deal includes a new fee schedule for airlines, with flat costs for the first five years and then rising at a rate pegged to annual US consumer price inflation for the next 10 years. Approximately $585m in revenue sharing with the PRPA will be used to support Puerto Rico’s regional airports.