Aerodom LBO Takes Off

Private equity firm Advent International is close to landing its buyout of Aeropuertos Dominicanos Siglo XXI (Aerodom). The global firm, whose Mexico team is running the deal, is raising $350m in the syndicated loan market to help pay for the asset, which operates 6 Dominican airports on concession from the government. The facility is broken into 2 tranches: a $125m 7-year amortizer at 450bp over Libor and a 7-year bullet with cash sweep that pays 450bp out of the box. Pricing is on a leverage grid and includes step ups taking the margin as high as 900bp over Libor, according to people with knowledge of the terms. Leverage out of the box is heard at 3.5x. ING and Scotia are leading, and EDC has signed on as a senior MLA. The deal will likely be funded ahead of syndication, scheduled to close in mid-September. Around 9-10 banks are expected to participate, including Dominican institutions, say bankers away from the deal.