MIC's Atlantic Aviation seeks $100m debt increase

Of the $100m, the MIC subsidiary will use $65m to fund its recently announced acquisition of Galaxy Aviation assets.

Atlantic Aviation, a subsidiary of the Macquarie Infrastructure Company (MIC), will seek to increase its Term Loan B facility by $100 million, MIC said in a statement.

Approximately $65 million of the debt upsizing will be used to fund Atlantic Aviation’s $195 million acquisition of five fixed-base operations from Galaxy Aviation, previously announced in December 2013. The rest of the proceeds will be retained by Atlantic Aviation, according to the statement.

“The terms of the $100 million upsizing are expected to be the same as those of the business’ current Term Loan B facility,” MIC said in a separate statement issued on Tuesday.

In June 2013, the aviation services subsidiary successfully refinanced a seven-year, $465 million term loan, which it used to pay its outstanding debt. The new loan has an interest rate of 2.5 percent over LIBOR, with the LIBOR component having a floor of 75 basis points.

In conjunction with the debt offering, Atlantic Aviation is expected to generate EBITDA for full-year 2013 that is at the top end of the company’s guidance, which ranges between $137 million and $145 million for the year.

Based in New York, Macquarie Infrastructure Company owns, operates and invests in a diversified group of infrastructure businesses providing basic services to customers in the US. It is a wholly-owned subsidiary of Sydney-based asset manager Macquarie Group.