$165 debt for LPIA Phase One paid off
The $165 million in debt from Phase One of Lynden Pindling international Airport has been paid off–Guardian Business can confirm–making way for the second phase of the$409.5 million redevelopment project to begin.
Executives from Nassau Airport Development Company (NAD) revealed that the sum was deposited into the bank account of the project fund on Tuesday, which will be used to pay off the debts generated during Phase One and refresh the project’s revolving credit facility to enable Phase Two of the redevelopment to get underway. President and CEO of the airport management company Stuart Steeves said paying off the bill was critical so that the project will stay on schedule.
“Our mandate is very clear”, Steeves said.”We need to maintain the integrity of our financing deal with our lenders and investors, and return all proceeds from our revenue-generating activities to the project in order to ensure its execution.”
Phase One of the project is as much as$8 million under its projected budget, with Steeves attributing the reduction to proper budgeting and management.
NAD’s Vice-president of Finance and Chief Financial Officer Paul Ward said securing the$165 million to pay for Phase One was a great accomplishment. According to him NAD has maintained a good reputation with its lenders and investors.
“It is very satisfying to us that we have been able to secure the level and type of financing that we have, with an investment grade rating, so that we assure the successful execution of the entire redevelopment project,”Ward said.NAD revealed during a press conference held last week that it has raised$582 million from four separate transactions. The company also revealed in its annual report a$4.4 million increase in revenue to$41.4 million compared to 2009. Operating expenses decreased by$9 million to$17.7 million and NAD generated$12.1 million in net income.
The first phase is 80 percent complete according to NAD executives, with the interior and exterior of the U.S. departures terminal taking shape. Phase One included upgrades to the physical and sanitary conditions in the current terminals, the installation of a$2 million baggage system, a new baggage carousel in international arrivals, 17 new or refurbished restrooms, enhancement of the public address system and modifications to the parking facilities.The projected date for the terminal’s opening is March 2 according to NAD, with the second phase beginning immediately after its completion.