MEGAWIDE Construction Corp.’s airport subsidiary GMR Megawide Cebu Airport Corp. (GMCAC) has cleared the runway for full recovery with the recent completion of the financial rebalancing program agreed with its lenders, which involves the relaxation of original debt servicing and covenant commitments.
Practically in the next three years, GMCAC will be able to preserve P4.5 billion in cash, initially earmarked for principal debt servicing, and utilize it for its operations while regular travel remains contained due to the coronavirus scare. In turn, this will be amortized throughout the life of the loan, with bulk payments scheduled towards 2027 to 2029.
Aside from the lenders, BDO Capital & Investment Corp. — which acted as the financial advisor for the transaction — played an instrumental role in assuring the financial partners of the long-term, mutually beneficial advantages that can be realized from the agreement.
During the negotiations, BDO Capital, with the support of all parties, developed a mutually acceptable proposition to amend the original schedule of the 15-year, P23.9 billion project financing for the company’s 25-year concession agreement to develop, operate and maintain Mactan-Cebu International Airport. / (PR)