GAP prices peso paper

GAP prices peso paper

Bonds Debt Capital Markets Corporate & Sovereign Strategy Mexico

Mexico's Grupo Aeroportuario del Pacífico (GAP) has priced MXN3bn ($154m) in five-year notes at 8.96%, or 45bp over the 28-day TIIE rate.

Scotiabank and Banorte were the bookrunners on the local debt sale, the airport operator's sixth issue under a five-year, MXN15bn bond program, GAP said in a securities filing.

Moody's assigned an A3 rating on the global scale and a on the local scale, while S&P Global gave the bonds an mxAAA on the local scale, GAP said.

GAP had planned to sell MXN6bn in local notes under the same bond program, but it scrapped the sale in difficult market conditions last month. The company can still issue up to another MXN3bn in bonds under the current program, according to Moody's.

GAP operates 12 airports in Mexico with roughly 25% of total air passengers. The airports in Guadalajara, Tijuana, Puerto Vallarta and Los Cabos account for approximately 70% of GAP's passenger traffic, according to Moody's.

The Guadalajara-based firm also owns 74.5% of MBJ Airports, which runs the Sangster International Airport in Montego Bay, Jamaica. GAP signed a 25-year concession contract for the Norman Manley International Airport in Kingston in October last year, outlining $60m in investments in three years.

GAP recorded MXN116m in net income in the fourth quarter last year, up 8.9% on the same quarter in 2017, as operating income grew 23.1% year-on-year to MXN350m and EBITDA rose 19.4% to MXN369m.



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