BAA gets £7bn loan for expansion

Heathrow_london_750pix Ferrovial, the owner of BAA, has secured £7.65 bn in loan financing, some of which is earmarked to fund expansion at Heathrow.

The Spanish group said on Monday it had agreed basic terms with nine banks for a loan over five or six years. Ihe FT says the lenders include five banks involved in its original acquisition financing – Citigroup, RBS, HSBC, Calyon and Santander – as well as four new banks including BBVA and Caja Madrid.

The “backstop” facility will be used to expand and upgrade BAA airports and to retire some of the £4.5bn in acquisition debt taken on when the consortium paid £16bn, including debt, for BAA at the peak of the credit boom in 2006.

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