Santander and RBS have provided a £45 million (53.6 mln.) revolving credit facility for Birmingham International Airport in a refinancing that will support a proposed runway extension. Birmingham International Airport has ambitious growth plans. In January the airport started work on a £13m project to merge its two terminals and is well into plans to extend its runway. This follows the completion of a new £46 million International Pier. The developments are aimed at expanding the range of craft the airport can serve, which would mean more destinations becoming available from Birmingham.
The airport's finance director Mark Hattersley, said: "Birmingham Airport is a major infrastructure asset for the UK and a key driving force of the Midlands economy. To enable us to meet the future needs of our passengers we continue to invest in our terminal buildings. And we are also progressing discussions with stakeholders on the extension of our runway. The new bank facilities that we are putting in place currently will assist us in fulfilling all of our medium term plans."
International law firm Pinsent Masons advised the banks. Matthew Heaton banking partner at Pinsent Masons said: "It was a privilege to be involved in a deal with such regional and national significance. The continued development of Birmingham Airport can only help improve the regional economy by making the Midlands an even better place to do business. This is the latest in a series of recent high-profile funding transactions that Pinsent Masons has been involved in, further underlining its strength in property finance, project finance and corporate lending."
Santander was named as co-ordinator and agent on the deal. Its Birmingham corporate-focused business has seen rapid growth over the last year. In the second half of 2009 it started a recruitment drive, and moved offices from Temple Row to a larger site on Cornwall Street to accommodate the expanding business.
Mark Eley, a relationship director at the bank, said: "Birmingham Airport is a new client relationship for Santander and I am delighted that we have been able to earn the confidence of management and secure the lead bank role on such a high-profile financing. We look forward to working closely with the airport in the coming years."
Eversheds advised the airport.
Source: MJ2 Limited