Milbank LLP advised Citigroup as global coordinator, sole bookrunner and initial purchaser in a $400 million securitization of certain concession fee payments and revenues of the Sangster International Airport (“SIA”) for the Government of Jamaica. The 6.600% securitization senior secured bonds due 2035 are secured by all equity interests in the SPV issuer, all existing and future assets including such gross revenues and certain issuer bank accounts. As an enhancement of this innovative structure, the Government of Jamaica has the obligation to top-up any missing amount for up to 28% of gross revenues of the SIA, under certain circumstances, including to compensate for the effects on concession fee payments and revenues attributable to an alternate airport commencing of operations.
“It is a privilege to have advised our clients on another successful airport financing for the Government of Jamaica and our firm,” said Marcelo Mottesi, chair of Milbank’s Corporate Finance and Securities practice and co-head of the firm’s Latin America group. Last year, Milbank advised the initial purchasers on the $480 million securitization of a portion of the gross revenues of the Norman Manley International Airport for the Government of Jamaica.
“We are pleased to have partnered with our clients on another market-setting transportation infrastructure transaction in the region,” added Dan Bartfeld, chair of the firm’s Global Project, Energy and Infrastructure Finance group.
The Milbank deal team was led by Mr. Mottesi and Mr. Bartfeld along with Corporate Finance and Securities special counsel Andres Osornio Ocaranza and included Corporate Finance and Securities associates Abir Varma, Mackenzie Martin, Allison Mahoney and Heaven Johnson, Global Project, Energy and Infrastructure associates Louise Toledo Farias and Rafael Bresciani, Alternative Investments partner Catherine Leef Martin and Tax partner Andrew Walker and associate Michelle Song.
