OTTAWA, ON, April 24, 2021 /CNW/ – The Ottawa International Airport Authority (OIAA) announced today that it has successfully obtained consent from its bondholders (the “Bondholders”) to temporarily waive certain provisions (the “Proposed Amendments”) under its master trust indenture (the “Indenture”) governing its outstanding series of bonds, including pledged bonds (collectively, the “Bonds”) under the previously announced consent solicitation process (the “Consent Solicitation”).
The Proposed Amendments, which were set out in detail in a consent solicitation circular dated April 7, 2021 (the “Circular”) delivered to all Bondholders, will temporarily relieve OIAA of its obligations to meet or satisfy its rate covenant, the additional indebtedness covenant and the restriction on sale, lease, etc. covenant for 2021 and 2022 fiscal years.
As reported by the tabulation agent for the Consent Solicitation, Bondholders representing 98.34% of the principal amount of all outstanding Bonds delivered valid proxy and consent forms in favour of the extraordinary resolution (the “Resolution”) in respect of the Proposed Amendments. As a result, the Resolution was passed by written consent of the Bondholders and the previously scheduled meeting to be held by teleconference at 10:00 a.m. (Eastern Time) on April 27, 2021 has been cancelled.
As fully outlined in the Circular, the Bondholders who delivered (and did not revoke) a valid proxy and consent form prior to the cut-off time set forth in the Circular will receive the voting fees provided they satisfy the required conditions.
While the Proposed Amendments are in effect, OIAA will disclose in the notes of the quarterly financial statements submitted to the Bondholders’ trustee if the available amount of liquidity at the end of that fiscal quarter drops below $20 million.
“Since the beginning of the pandemic, OIAA’s primary goal has been financial sustainability. The successful completion of this process is an important factor in the achievement of that goal and demonstrates the market’s confidence in the industry and our airport,” said Mark Laroche, President and CEO of the Ottawa International Airport Authority. “The certainty it brings will allow OIAA to resume its role as an economic generator in Canada’s Capital Region when recovery from the COVID-19 pandemic begins.”
CIBC World Markets Inc. acted as solicitation agent. D.F. King Canada acted as information agent in connection with the consent solicitation. AST Trust Company (Canada) acted as tabulation agent. Norton Rose Fulbright Canada LLP acted as legal advisor to OIAA. Bondholders who have questions or need assistance should contact D.F. King Canada by phone at 1-800-239-6513 (toll free North America) or 1-416-682-3825 (collect outside North America) or by email at inquiries@dfking.com.
About the Ottawa International Airport Authority
OIAA manages, operates and develops airport facilities and lands in support of the economic growth of Canada’s Capital Region, generating more than $2.2 billion annually in total economic activity in Ottawa and Gatineau.
Canadian Aviation News 