Ferrovial's intention to sell a 25% stake in Heathrow Airport has evolved into a potential sale up to 60%, as other shareholders have exercised their rights under the transaction. This could lead to a potential early repayment of up to £2.4bn ($3bn) as the expanded deal may trigger a change-of-control clause in Heathrow Finance's debt documentation, under certain conditions.
The change-of-control debt repayment could be covered through a combination of available liquidity and debt refinancing, which may result in an increase in the cost of debt.
American credit rating agency Fitch Ratings said: "We expect Heathrow to have about £2.4bn [$3bn] in available cash at end-2023. The rest of the group's debt of about £16.2bn [$20.6bn] at other entities is unaffected by the change-of-control clause."
It added that it did not expect Heathrow's credit profile to be impacted, even if its shareholder structure changes, as it benefits from extensive creditor protective features and from strong capital market access.
Ferrovial announced its intentions to sell 25% of its stake for £2.3bn ($2.9bn) in November 2023.