Wellington City Council has confirmed the details of the shareholder support provided to Wellington International Airport Limited as a response to the financial impact of the pandemic.
The City Council owns 34 per cent of the Airport and Infratil owns the remaining 66 per cent.
Together the shareholders have agreed to jointly provide an equity underwrite of up to $75.76 million. The Council’s share of the underwrite is $25.76 million – in line with its 34 per cent shareholding.
The Council voted on April 23 to approve its share of the underwrite. Since then the participating parties have been finalising the agreement.
The facility will be able to be drawn by the Airport, importantly only if required, through the issuance of redeemable preference shares (RPS). It is not expected that there will be a need to draw down, but it is important to give WIAL’s bankers comfort.
The actions of the shareholders ensures the Airport is soundly financed to meet all of its obligations and maintain the support of its lenders over the next two years as it recovers from the significant impacts of COVID-19 on the airline industry.
