Grupo Aeroportuario del Pacifico Announces Ps. 6.0 Billion Bond Issuance in Mexico
Grupo Aeroportuario del Pacífico, S.A.B. de C.V., (NYSE:PAC; BMV: GAP) (“the Company” or “GAP”), a leading airport operator in Mexico, has announced the successful completion of a significant bond issuance in the Mexican market. The company issued 60 million long-term bond certificates, raising a total amount of Ps. 6.0 billion (six billion Pesos). This issuance was conducted through two distinct tranches and included a greenshoe option, which was exercised upon closing, allowing for an additional 20% over the initial target amount of Ps. 5.0 billion. The order book for the issuance saw substantial investor interest, with an oversubscription rate of 3.4 times the base amount.
Details of the Issuance
The bond certificates were issued under two separate tranches, each with its own unique characteristics:
- Tranche 1 – GAP 25 Certificates
The first tranche consisted of 30 million debt certificates, identified by the ticker symbol “GAP 25.” Each certificate carries a nominal value of Ps. 100, resulting in a total issuance amount of Ps. 3.0 billion. These certificates offer a variable interest rate tied to the TIIE funding rate plus 50 basis points, payable every 28 days. The principal payment is due at maturity on February 1, 2028. Notably, these certificates include an option for early amortization, providing flexibility for the company in managing its debt obligations. - Tranche 2 – Reopening of GAP22-2 Certificates
The second tranche involved the issuance of an additional 30 million debt certificates, also totaling Ps. 3.0 billion. This issuance represents the first reopening of the long-term debt certificates series “GAP22-2,” which were originally issued on March 17, 2022. These certificates retain the same characteristics as the original issuance, with interest payable every 182 days at a fixed rate of 9.67%. The principal payment is scheduled for maturity on March 4, 2032, and includes an option for early amortization. The placement price for these certificates was set at Ps. 101.026277 per unit, reflecting the accrued interest for the ongoing interest period and the applicable spread for the additional certificates.
Credit Ratings and Investor Confidence
Both tranches of the issuance received the highest credit ratings available in Mexico. Moody’s assigned a rating of “Aaa.mx,” while S&P awarded a rating of “mxAAA,” both on a national scale with a stable outlook. These ratings underscore the strong financial health and stability of GAP, reinforcing investor confidence in the company’s ability to meet its financial obligations. The high ratings also reflect GAP’s robust operational performance and strategic positioning within the aviation industry.
Use of Proceeds
The proceeds from this bond issuance will be strategically allocated to refinance existing debt and fund future growth initiatives. Specifically, the funds will be used to pay off the principal of two existing bond issuances:
- Refinancing Existing Debt
- Ps. 3.0 billion will be directed toward repaying the principal of the debt certificates with the ticker symbol “GAP 20,” issued on February 13, 2020, and maturing on February 6, 2025.
- An additional Ps. 2.5 billion will be used to settle the principal of the “GAP 21” certificates, issued on May 7, 2021, and maturing on May 2, 2025.
- Funding Growth Initiatives
The remaining funds will be earmarked for committed investments under GAP’s Master Development Program for the 2025 fiscal year in Mexico. These investments are aimed at enhancing airport infrastructure, improving passenger experience, and supporting commercial activities. Additionally, the funds will support commercial investments that align with GAP’s long-term growth strategy.
Strategic Importance of the Issuance
This bond issuance marks a significant milestone for GAP, enabling the company to optimize its capital structure and reduce refinancing risks. By refinancing existing Aeroportuario debt with longer maturities, GAP has effectively extended its debt profile, ensuring greater financial stability and flexibility. Furthermore, the successful execution of the greenshoe option highlights the strong demand for GAP’s securities, underscoring the company’s reputation as a reliable and attractive investment opportunity.
The allocation of proceeds toward the Master Development Program underscores GAP’s commitment to sustainable growth and innovation. As one of Mexico’s leading airport operators, GAP plays a pivotal role in facilitating regional economic development and enhancing connectivity. The planned investments will not only improve operational efficiency but also position GAP to capitalize on emerging opportunities in the aviation sector.
About Grupo Aeroportuario del Pacífico
Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAP) is a premier airport operator in Mexico, managing 12 airports across the country’s Pacific region. These include major cities such as Guadalajara and Tijuana, popular tourist destinations Aeroportuario like Puerto Vallarta, Los Cabos, La Paz, and Manzanillo, and six mid-sized cities: Hermosillo, Guanajuato, Morelia, Aguascalientes, Mexicali, and Los Mochis. GAP’s extensive network serves as a critical hub for domestic and international travel, contributing significantly to Mexico’s tourism and trade sectors.
In February 2006, GAP achieved a significant milestone by listing its shares on the New York Stock Exchange under the ticker symbol “PAC” and on the Mexican Stock Exchange under the ticker symbol “GAP.” This dual listing has enhanced the company’s visibility and accessibility to global investors, further solidifying its position as a key player in the aviation industry.
GAP’s international footprint expanded in April 2015 when it acquired 100% of Desarrollo de Concesiones Aeroportuarias, S.L., a company holding a majority stake in MBJ Airports Limited. MBJ operates Sangster International Airport Aeroportuario in Montego Bay, Jamaica, one of the Caribbean’s busiest airports. In October 2018, GAP secured a concession agreement to operate Norman Manley International Airport in Kingston, Jamaica, taking full control of the facility in October 2019. These acquisitions have strengthened GAP’s presence in the Caribbean, diversifying its revenue streams and enhancing its operational capabilities.