MIC announces pricing of public offering of $350 million of convertible senior notes

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MIC announces pricing of public offering of $350 million of convertible senior notes

Macquarie Infrastructure Corporation (MIC) has announced the pricing of US$350 million of convertible senior notes due 2023.

In addition, the company has granted the underwriters a 30-day option to purchase up to an additional US$52.5 million of convertible senior notes solely to cover over allotments. The size of the offering was increased from US$325 million to US$350 million.

The convertible senior notes will be unsecured, unsubordinated obligations of MIC, and interest will be payable semi-annually at a rate of 2.0% per annum. The initial conversion rate of the convertible notes is 8.9364 shares of common stock per US$1,000 principal amount of the convertible notes (which is equivalent to an initial conversion price of approximately $111.90 per share).

Upon conversion, MIC will pay or deliver, as the case may be, cash, shares of common stock of MIC or a combination of cash and shares of MIC common stock, at its election. Prior to July 1, 2023, the notes will be convertible at the option of holders of the notes only upon satisfaction of certain conditions and during certain periods, and thereafter, the notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.

The company expects to use the net proceeds from this offering for general corporate purposes, including, but not limited to, the closing of the proposed acquisition of the aviation facility at Stewart Airport in New York; the expansion of the company's Bayonne Energy Center by 130 megawatts; the closing of the proposed acquisition of the 80 megawatt Utah Red Hills solar power facility; the repayment of the outstanding balance on the company's senior secured revolving credit facility, and, if the refinancing of the existing senior secured credit agreement of the company's Atlantic Aviation business is completed, MIC intends to use the net proceeds of the offering, in part, to repay a portion of the drawn revolving loan balance under the new Atlantic Aviation senior secured credit agreement.

J.P. Morgan, Barclays, BBVA, Regions Securities LLC and Wells Fargo Securities are acting as joint book-running managers for the offering.

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