$2 billion debt restructuring positions The Calgary Airport Authority for predictable future

Calgary, Alberta - The Calgary Airport Authority has restructured its debt in a move that will provide stability and certainty to support YYC Calgary International Airport as a vital hub for economic growth for Calgary and the surrounding region. 

The Authority completed its inaugural bond offering today, raising $2.075 billion of private placement bonds that will be used to repay two-thirds of the Authority’s debt with the Province of Alberta, pay transaction costs, and for general corporate purposes. 

The issuance was significantly oversubscribed with over $9 billion in orders, attracting the largest total order books of a bond offering ever in Canada. It was also the largest inaugural bond offering by a Canadian issuer, demonstrating investor belief in the strategy and future of YYC. 

“The reaction to this inaugural bond offering represents confidence in YYC and its future,” said Bob Sartor, President and Chief Executive Officer of The Calgary Airport Authority. “The certainty provided by this move will sharpen management’s focus on long-term planning from a capital, operations, and growth perspective.” 

The Authority chose to access the market at this time to:

• Extend its debt maturity schedule and better align with the cash flow profile of the underlying asset, 
• Reduce interest rate risk by issuing long-term, fixed rate debt, 
• Diversify lenders and reduce dependency on a single lender, and
• Leverage favourable market conditions.

“We have established a deep and broad base of high-quality institutional investors that complements the continued support of the Province and serves as a source of funding for future capital needs,” said Robert Palmer, Vice President, Commercial, Strategy & Chief Financial Officer of The Calgary Airport Authority. 

Details are broken down as follows:

The joint leads and joint bookrunners on the issuance were CIBC World Markets Inc., RBC Dominion Securities Inc., and Scotia Capital Inc. and the co-agents were BMO Nesbitt Burns Inc., and TD Securities Inc. Blakes Cassels & Graydon LLP represented the Authority for the transaction.

Quick facts:

• YYC is one of the busiest airports in Canada. In 2019, 18 million passengers passed through the airport.
• YYC had the highest percentage of connecting flights in Canada prior to the pandemic and is one of the top connecting airports in the world.
• YYC had the lowest cost per passenger among tier 1 airports in Canada in 2020.
• YYC handles 75% of Alberta’s air cargo shipments. During 2020, cargo landings grew by 11%.
• The Calgary Airport Authority generates revenue through aeronautical revenue (landing fees, parking fees, usage fees for terminals/gates, etc.), terminal space rentals such as retail, car parks and food and beverage outlets, and airport improvement fees that go toward new infrastructure and major improvements, including associated debt. 

-30-

This news release contains certain forward-looking statements about our current expectations, estimates and projections about the future, based on certain assumptions made by us in light of our experience and perception of historical trends. Although the Authority believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements as actual results may differ materially from those expressed or implied.

This news release has been prepared solely for informational purposes and is not an official confirmation of terms. It is not a recommendation to buy or sell any securities, nor shall there be, or has there been, any offer, solicitation, or sale of any securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to the registration or qualification of such securities under the securities law of any such jurisdiction. The offering was made pursuant to exemptions from the prospectus requirements of applicable Canadian securities laws.

ABOUT THE CALGARY AIRPORT AUTHORITY

The Calgary Airport Authority is a not-for-profit organization incorporated under the Regional Airports Authorities Act of Alberta and is responsible for the management, operation and development of YYC Calgary International Airport (YYC) and Springbank Airport (YBW). The Authority’s commitment to safety remains a top priority and our #FlyHealthyYYC program has received the Airport Health Accreditation by Airports Council International. Our airports are important economic generators for the city, region and province, supporting thousands of jobs and generating billions in GDP through associated economic activity. The Authority was also recognized as one of Alberta’s Top Employers for 2021.

Media Relations

Lori DeLuca
General Manager, Stakeholder Relations
The Calgary Airport Authority
lorid@yyc.com
403 735 5899    

Dean Paddock
Director, Communications & Stakeholder Engagement
The Calgary Airport Authority
deanp@yyc.com
403 735 2194