Sydney Airport Finance Company Pty Limited
Southern Cross Airports Corporation Pty Ltd, Southern Cross Airports Corporation Holdings Ltd, Sydney Airport Corporation Limited, Sydney Airport RPS Company Pty Limited
Debt Issuance Programme dated 28 June 2010
Dated 24 May 2011
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
Australian Dollars (“A$”)
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.
25 May 2011
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 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.
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.