Investing

Sydney Airport Finance

Transportation

Sydney Airport Finance

Latest price

$ 110.24

  • ASX code
    YTMSYD
  • Maturity date
    06-Jul-2018
  • Capital structure
    Senior Unsecured
  • Coupon type
    FIXED
  • Coupon P.A
    7.75%
  • Issue Date
    25-May-2011
  • Next ex. distribution date
    27-Jun-2017
  • Next interest payment date
    06-Jul-2017
  • Payment frequency
    Semi-Annual

Issuer

Sydney Airport Finance Company Pty Limited

Guarantors

Southern Cross Airports Corporation Pty Ltd, Southern Cross Airports Corporation Holdings Ltd, Sydney Airport Corporation Limited, Sydney Airport RPS Company Pty Limited

Base Terms

Debt Issuance Programme dated 28 June 2010    

Pricing Supplement

Dated 24 May 2011    

Governing Law

New South Wales, Australia    

Nature of the Bonds

The Bonds (“Notes”) are direct, unconditional and unsubordinated debt obligations of the Issuer guaranteed by the Guarantors and rank:

i)   equally amongst themselves;
ii)  at least equally with other beneficiaries; and
in priority to any subordinated debt    

Currency

Australian Dollars (“A$”)   

Issue Size

A$100,000,000

Interest Rate

7.75% percent per annum, payable semi-annually (in two coupons of 3.875%) in arrears

Interest Payment Dates

6 January and 6 July in each year, including the Maturity Date.  If any of these dates is not a Business Day, then the Interest Payment Date will be the next Business Day.

Bond Denomination

A$1,000

Issue Date

25 May 2011  

Maturity Date

6 July 2018 

Repayment at Par on the Maturity Date

On the Maturity Date, Holders will receive:

Par (i.e., 100% of the Face Value);
and the final payment of Interest for the last Interest Period.    

Key Benefits

Key benefits include:

  • interest paid semi-annually in arrears;
  • interest paid as 100% cash;
  • interest is not deferrable nor are interest payments discretionary;
  • rank equally with all other senior and unsecured creditors of the Issuer.    

Key Risks

The value of an investment in Sydney Airport Bonds may fluctuate due to various factors, including investor perceptions, worldwide economic conditions, interest rates, debt market conditions and factors that may affect Sydney Airport’s financial performance. The following risks may also affect an investment in Sydney Airport Bonds:

  •  Liquidity Risk – An active secondary market in respect of the Bonds may never be established or may be illiquid and this would adversely affect the value at which an investor could sell the Bonds;
  • Interest Rate Risks – bondholders may suffer unforeseen losses due to fluctuations in interest rates;
  • Litigation Risks - Risks relating to litigation and regulatory actions;
  • Default Risk - if an event of default occurs under the Bonds, or Sydney Airports fails to perform any obligation in relation to the Bonds, such event or failure may impact on the value of an investment in the Bonds, the transferability of the Bonds and the ability of a holder to recover amounts due under the Bonds.

Early Redemption by Issuer

The Issuer can redeem the Notes at any time during the period 12 months prior to the Maturity Date. In certain circumstances, the Issuer can also redeem the Notes early for Tax reasons.

Early Redemption by Holder

In certain circumstance, where there is a Change of Control and the Issuer is no longer rated investment grade by two of Moody’s, Standard & Poor’s and Fitch Ratings Services, then Holders of the Notes can “Put” the Notes back to the Issuer prior to the Maturity Date.

Negative Pledge