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Grupo Aeroportuario del Pacífico Announces Credit Line Refinancing for Ps. 1.0 Billion

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Grupo Aeroportuario del Pacífico (GAP), which operates 12 airports in Mexico's Pacific region, has refinanced a Ps. 1.0 billion credit facility with Banco Nacional de México (Citibanamex). The refinancing extends the maturity date by 12 months, with interest payable monthly at a variable rate of TIIE-28 plus 18 basis points. Principal repayment is due on July 10, 2025. This refinancing ensures continued financial flexibility for GAP, a company with listings on both the New York Stock Exchange (PAC) and the Mexican Stock Exchange (GAP).

Positive
  • Successful refinancing of Ps. 1.0 billion credit facility.
  • Extended maturity date by 12 months, providing financial flexibility.
Negative
  • Interest payable monthly at a variable rate could introduce financial uncertainty.

Grupo Aeroportuario del Pacífico (GAP) has successfully refinanced a Ps. 1.0 billion credit line with Citibanamex, extending the maturity by 12 months. This move can be seen as a strategic decision to maintain liquidity and manage debt efficiently. Refinancing typically allows companies to take advantage of more favorable interest rates or extend payment terms, providing financial flexibility.

The new terms of the credit line include a variable rate of TIIE-28 plus 18 basis points. The TIIE-28 is a common reference rate in Mexico, analogous to LIBOR in international markets and is set by the Mexican central bank. Adding 18 basis points to this rate suggests a relatively low-risk perspective from the lender's side, indicating confidence in GAP's financial stability.

For investors, this development implies that GAP is focusing on improving its debt profile and ensuring operational stability. Extending the maturity date reduces immediate financial pressure, which can be particularly beneficial in uncertain economic times. The absence of additional fees further underscores the company's solid negotiation stance and financial health.

In the short term, this move should be viewed positively as it reflects prudent financial management. Long term, maintaining low-cost financing options is essential for sustaining growth, especially given GAP's extensive operations across multiple airports, which require continuous capital expenditure and investment.

GAP's refinancing of the Ps. 1.0 billion credit line is important not just from a financial perspective but also from a market confidence angle. The ability to secure refinancing with relatively favorable terms (TIIE-28 + 18 basis points) implies that GAP maintains a strong reputation and creditworthiness in the market. This extension of maturity signals to the market that GAP is proactive in managing its debt obligations and reducing financing risks.

For retail investors, this is a reassuring sign of GAP's robust financial health and strategic foresight. By securing this refinancing, GAP can focus on its core operational activities without the immediate need for significant cash outflows to cover debt repayments. This focus can enhance operational performance, which is beneficial for shareholders in terms of potential growth and dividends.

Moreover, with GAP operating in diverse and significant locations such as Guadalajara and Tijuana, ensuring financial stability and access to liquidity is important for addressing any operational disruptions and capitalizing on growth opportunities in the tourism sector, particularly in post-pandemic recovery phases. Investors can view this refinancing as a part of a larger strategy to solidify GAP's market position and operational resilience.

GUADALAJARA, Mexico, July 10, 2024 (GLOBE NEWSWIRE) -- Grupo Aeroportuario del Pacífico, S.A.B. de C.V., (NYSE: PAC; BMV: GAP) (“the Company” or “GAP”) announces that it completed the refinancing of the credit facility that matured today with Banco Nacional de México, S.A., (“Citibanamex”) for Ps. 1.0 billion, extending the maturity by 12 additional months. The interest will be payable monthly at a variable rate of TIIE-28 plus 18 basis points, without fees, and principal payment on July 10, 2025.

Company Description

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAP) operates 12 airports throughout Mexico’s Pacific region, including the major cities of Guadalajara and Tijuana, the four tourist destinations of Puerto Vallarta, Los Cabos, La Paz and Manzanillo, and six other mid-sized cities: Hermosillo, Guanajuato, Morelia, Aguascalientes, Mexicali, and Los Mochis. In February 2006, GAP’s shares were listed on the New York Stock Exchange under the ticker symbol “PAC” and on the Mexican Stock Exchange under the ticker symbol “GAP”. In April 2015, GAP acquired 100% of Desarrollo de Concessioner Aeroportuarias, S.L., which owns a majority stake in MBJ Airports Limited, a company operating Sangster International Airport in Montego Bay, Jamaica. In October 2018, GAP entered into a concession agreement for the Norman Manley International Airport operation in Kingston, Jamaica, and took control of the operation in October 2019.

   
 This press release may contain forward-looking statements. These statements are statements that are not historical facts and are based on management’s current view and estimates of future economic circumstances, industry conditions, company performance, and financial results. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations, and the factors or trends affecting financial condition, liquidity, or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends, or results will occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. 
   

In accordance with Section 806 of the Sarbanes-Oxley Act of 2002 and Article 42 of the “Ley del Mercado de Valores”, GAP has implemented a “whistleblower” program, which allows complainants to anonymously and confidentially report suspected activities that involve criminal conduct or violations. The telephone number in Mexico, facilitated by a third party responsible for collecting these complaints, is 800 04 ETICA (38422) or WhatsApp +52 55 6538 5504. The website is www.lineadedenunciagap.com or by email at denuncia@lineadedenunciagap.com. GAP’s Audit Committee will be notified of all complaints for immediate investigation.

Alejandra Soto, Investor Relations and Social Responsibility Officer asoto@aeropuertosgap.com.mx
   
Gisela Murillo, Investor Relations gmurillo@aeropuertosgap.com.mx/+52 33 3880 1100 ext. 20294

FAQ

What is the recent financial move by Grupo Aeroportuario del Pacífico (PAC)?

Grupo Aeroportuario del Pacífico (PAC) has refinanced a Ps. 1.0 billion credit facility with Banco Nacional de México (Citibanamex), extending the maturity by 12 months.

When is the principal payment due for the refinanced credit facility by PAC?

The principal payment for the refinanced credit facility is due on July 10, 2025.

What interest rate applies to PAC's refinanced credit facility?

The interest rate for PAC's refinanced credit facility is TIIE-28 plus 18 basis points, variable and payable monthly.

How many airports does Grupo Aeroportuario del Pacífico (PAC) operate?

Grupo Aeroportuario del Pacífico (PAC) operates 12 airports in Mexico's Pacific region.

Which financial institutions are involved in PAC's recent credit facility refinancing?

PAC's credit facility refinancing involves Banco Nacional de México (Citibanamex).

Grupo Aeroportuario del Pacífico, S.A.B. de C.V.

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