Linklaters advises Budapest Airport on €1.4bn debt facilities

Linklaters has advised Budapest Airport and its shareholders on the amendment and extension of its existing €1.4bn debt facilities with Dentons Budapest advising them on Hungarian law. Allen & Overy in London and Faludi Wolf Theiss in Budapest advised funders. Rothschild acted as financial adviser to Budapest Airport.

Amended in compliance with the Company’s concession arrangements, the transaction successfully enabled the Company to exchange junior debt with pari passu debt. A significant vote of confidence in the Company, the amended facility includes several highly bespoke features such as a liquidity facility and note issuance facility within a single facility amendment. The deal also included new institutional investors and the EBRD funding for 10 and 15 year terms, as well as a large swap restructuring. BLB continues as Agent.

The deal was completed within a relatively short period of five months from first negotiation to closing, which was a great achievement for all parties concerned given the complexity, bespoke nature of the new features added to the existing facility and the large number of counterparties.

The Linklaters team was led by Infrastructure Partner Ian Andrews and Structured Finance Partner Julian Davies, supported by a team of over 20 Linklaters lawyers across three jurisdictions, including Subir Rajadhyaksha on the core financing and James McGivern on the swaps.

Gergely Horváth led the team from Dentons Budapest advising Budapest Airport as to Hungarian law. Conrad Andersen, Tim Conduit and Seonaid Todisco led the Allen & Overy team, acting for the funders as to English law, with Faludi Wolf Theiss advising them as to Hungarian law.

For more information please contact Lianne Robinson on +44 207 456 5779.