MIG - Refinancing of Skyway Concession Company LLC

17 August 2005

Macquarie Infrastructure Group (MIG) today announced the refinancing of debt in relation to the Chicago Skyway (Skyway) in the United States.  Skyway Concession Company LLC (SCC) is the holder of the Skyway concession.  MIG acquired a 45% interest in SCC in January 2005.

The refinancing has resulted in the issue of US$1.55bn of new debt facilities by SCC and Skyway Concession Company Holdings (SCCH and 100% owner of SCC) to replace the existing facilities of US$1.016bn.  The new facilities are comprised of:

• US$1.40bn of senior debt (issued by SCC):
  • US$439m of Current Interest Bonds
  • US$961m of Capital Accretion Bonds
• US$150m of sub-debt (issued by SCCH)

The senior debt has been rated Aaa by Moodys and AAA by Standard and Poors.  Financial Security Assurance Inc (FSA), a triple–A bond insurer, has guaranteed the $1.40 billion of senior bonds. 

MIG’s initial investment in Skyway was US$397m for a 45% equity interest.  The new debt facilities result in a distribution to SCCH shareholders of US$373m, US$168m of which will be paid to MIG. 

Mr Stephen Allen, Chief Executive Officer of MIG said, “This is the first bond issue undertaken by MIG in the United States.  We are pleased with the level of interest it has received.

“This innovative financing structure better matches Skyway’s capital structure to its operating cash flows.  In turn this provides an improvement in the short-term yield prospects from Skyway and an immediate return of US$168m of cash to MIG.

“Since acquisition Skyway has been performing in line with our expectations.  The service to road users has been enhanced through the introduction of electronic tolling and we continue to invest in and upgrade the road infrastructure.

“MIG has investments in two major roads in the United States: Skyway, Chicago and greenfields project South Bay Expressway (formerly SR125 South), San Diego.  We are actively looking for opportunities to expand MIG’s investment in the United States as part of our overall growth strategy, “ Mr Allen said.

Skyway is a 12.5 kilometre divided elevated roadway with a significant bridge over the Calumet River and connects the Indiana East-West Toll Road and Dan Ryan Expressway in Chicago.

Skyway Concession Company LLC issued Rule 144A bonds.  Citigroup and Goldman & Co were joint book-running managers.  Macquarie Securities (USA) Inc was a member of the selling group.

• Download Skyway Refinancing Presentation (pdf 200 KB)

For further information, please contact:

Investor Enquiries
Peter Johnston
Head of Investor Relations
Mobile: (61) 413 994055
Email: peter.johnston@macquarie.com

Media Enquiries
Jane Rotsey
Public Affairs Manager
Mobile: (61) 401 997 160
Email: jane.rotsey@macquarie.com

Investor Enquiries
Bianca Francis
Investor Relations Manager
Tel: 61 2 8232 5007
Email: bianca.francis@macquarie.com