Aerostar in $200 Million Secured Note Purchase Agreement

May 26, 2022

Cleary Gottlieb is representing Aerostar Airport Holdings LLC (Aerostar) in a series of financing and liability management transactions for $630 million of indebtedness.

These transactions included the issuance of $200 million of 4.92% senior secured notes due 2035 with a delayed draw, the proceeds of which will be used for general corporate purposes (and which will be issued in a private placement in reliance on Section 4(a)(2) of the Securities Act). In addition to this issuance, Aerostar amended the terms of its $350 million of 5.75% senior secured notes due 2035, its $50 million of 6.75% senior secured notes due 2035, its $10 million senior secured revolving credit facility and its $20 million unsecured revolving credit facility. In connection with the new note purchase agreement and amendments, Aerostar received a new BBB+ public rating from S&P, improving upon its previous rating from Moody’s.

The transaction signed on May 26, 2022, and the notes are expected to be issued on July 21, 2022.

Aerostar is the private operator of the Luís Muñoz Marin (LMM) International Airport in San Juan, Puerto Rico, and is owned by ASUR, the Southeast Airport Group, and AviAlliance, a subsidiary of PSP, the Canadian public sector pension fund. Cleary previously represented Aerostar in its successful bid to become the operator of LMM, in negotiation and execution of the lease agreement and related airline use agreements, and in previous debt and equity financings.