BASIS POINT-Sydney Airports to refinance A$762 mln debt

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MELBOURNE, Aug 7 (Reuters Basis Point) - Sydney Airport
Corporation Ltd has approached a number of its relationship
banks to refinance a A$762 million ($692.7 million) three-year
capital expenditure facility, sources said.

Banks working on refinancing proposals, which are due later
this month, include lenders to the existing deal: ABN AMRO
Australia, BNP Paribas, Commonwealth Bank of Australia and
Westpac Banking Corp.

The margin on the current financing is less than 50 basis
points (bps) over BBSY, but the new deal's pricing is expected
to be more than double that because of market conditions, said
a banking source.

The refinancing is expected to close as a club loan, as
banks currently have little appetite for underwriting large
amounts of debt, another banker said.

The existing debt matures in December 2009, but the company
has decided to refinance it now in case credit markets
deteriorate further.

Sydney Airports is majority owned by Macquarie Airports
(MAP.AX).

The current facility was part of A$959 million in loans,
which also included an A$86 million three-year working capital
facility and a A$111 million five-year liquidity facility.

It also has A$2.724 billion of monoline-insured bonds from
December 2006.

The earlier financing is rated BBB, Baa2 and BBB by Fitch
Ratings, Moody's Investors Service and Standard & Poor's,
respectively.

Macquarie Capital Advisors is advising on the refinancing.
($1=1.10 Australian Dollar)
(Reporting by Sharon Klyne)