Business Context and Reporting Period
Company: Corporación América Airports S.A.
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Date: August 13, 2019
Subject: Announcement of new credit facility agreements entered into by the subsidiary, Aeropuertos Argentina 2000 S.A. (the "Company"), on August 9, 2019.
Key Financial Metrics
This filing does not report consolidated revenue, profit, cash flow, or margin data. It details specific debt financing terms:
- Total New Debt Principal: US$120,000,000
- Onshore Facility: US$85,000,000 at a fixed annual nominal rate of 9.75%.
- Offshore Facility: US$35,000,000 at a variable rate (LIBOR + 5.500% applicable interest rate + withholding tax).
- Term: 36 months from the borrowing date.
- Repayment Schedule: Eight (8) quarterly equal installments, commencing 12 months after the borrowing date.
- Lenders: Citibank N.A., Industrial and Commercial Bank of China (Argentina) S.A., Banco Galicia, Buenos Aires S.A.U., and Banco Santander Río S.A.
Material Changes
The filing reports a material increase in debt obligations for the subsidiary Aeropuertos Argentina 2000 S.A. through the execution of two new credit facility agreements. Proceeds are designated for the construction of infrastructure works in airports within Group "A" of the National Airport System. No prior period financial comparison is provided in this document.
Outlook, Risks, and Contingencies
Use of Proceeds: Infrastructure construction for Group "A" airports.
Collateral and Security: To secure obligations, the Company transferred rights to cargo airport charges (excluding 15% of total concession revenues) and residual amounts related to potential termination, expropriation, or redemption of the concession agreement. This assignment was authorized by Resolution No. 61/2019 of the ORSNA.
Risks: The offshore facility carries a variable interest rate structure dependent on LIBOR and applicable withholding taxes, introducing interest rate and tax liability risks.
Investor Verification Checklist
- Verify the exact borrowing date to determine the start of the 36-month term and the 12-month deferral period for repayments.
- Confirm the specific LIBOR benchmark and the calculation of the "applicable withholding tax" for the offshore facility to assess total interest cost.
- Review the impact of the collateral assignment on future cash flows, specifically the exclusion of 15% of total concession revenues from the pledge.
- Check for any subsequent filings regarding the actual drawdown of the US$120 million principal.