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Australian airport group in A$350m refinancing

Northern Territory Airports, which operates Darwin International and Alice Springs airports and is majority owned by Industry Funds Management, has announced A$350m of new bank facilities.

Northern Territory Airports (NTA), in which Australian fund manager Industry Funds Management has a 55.6 percent stake, has announced the refinancing of A$350 million (€265 million; $371 million) of senior debt facilities with Australia and New Zealand Banking Group, National Australia Bank and Westpac Banking Corporation.

The refinancing involves the firm’s expiring debt of $225 million and new capital expenditure facilities of $125 million. NTA said in a statement that “significant savings” had been made through the refinancing, which will allow NTA to “enhance and expand” the services it offers to the 3 million passengers passing through NTA’s Darwin International and Alice Springs airports each year.

NTA is owned by Australian fund managers Industry Funds Management (55.6 percent), Hastings Funds Management (28.23 percent) and Palisade Investment Partners (16.17 percent). The firm has been in private hands for the last 13 years.

NTA chief financial officer Tom Ganley said in the statement: “These new facilities will allow NTA to continue its significant investment in aeronautical assets across our airports including the terminal and apron expansion at Darwin and the apron overlay at Alice Springs.

“The bank facilities will also allow further investment to occur across the airports including car parking and retail at both locations over the next three to five years.”

Alice Springs Airport is connected to seven domestic Australian destinations, while Darwin is connected to 11 domestic and 5 international destinations.

NTA was advised on the refinancing by RBC Capital Markets.