Macquarie Infrastructure Corporation Announces Investments in Fixed Base Operation, Solar Power Projects, Refinance of Hawaii Gas

NEW YORK--(BUSINESS WIRE)--

Macquarie Infrastructure Corporation MIC announced new investments on behalf of its Atlantic Aviation and Contracted Power & Energy operations, and the receipt of commitments for the refinancing of portions of the debt of its Hawaii Gas business.

"With these investments MIC will deploy more than $30 million of capital in the continued, prudent growth of our company," said James Hooke, chief executive officer of MIC. "In addition to our investments in renewable power in Hawaii, the dislocation in the Yieldco sector, together with our balance sheet strength, means that MIC has the ability to continue to add attractive projects to our portfolio without the need to raise new capital."

MIC's Atlantic Aviation business has expanded its nationwide network of FBOs to include operations at Salt Lake City International Airport (SLC) in Utah. Atlantic expects to commence operations at SLC on December 1, 2015.

The announcement follows a competitive bid process and a decision by the Salt Lake City Department of Airports culminating in the award of the FBO to Atlantic Aviation. Atlantic Aviation plans to invest approximately $25 million in the development of a state-of-the-art general aviation terminal, additional hangars, a new fuel farm, and other improvements.

The Company also noted that Atlantic Aviation had exited the Hartford, CT market with the sale of its FBO at Hartford-Brainard Airport. Terms of the sale were not disclosed.

MIC's Contracted Power & Energy segment anticipates making its first investment in Hawaii where the Company will deploy approximately $6 million of equity in two solar photovoltaic power generation projects. The transaction is expected to close before the end of October and construction should be completed in mid-2016. Once operational, the two projects will have a combined generating capacity of 6.5 megawatts with the power sold pursuant to 20-year off-take agreements.

In addition to MIC's sponsor equity, the project has secured Hawaii Public Utilities Commission approval, and expects to secure tax equity and committed post-construction financing. Building permits have been obtained and construction as well as operations and maintenance contracts have been agreed.

"We are pleased to be able to add projects in Hawaii to our portfolio of renewable energy power generating operations," said Hooke. "Hawaii is a recognized leader in clean energy with its innovative state-wide mandate regarding renewably sourced electric power and we look forward to making additional investments in support of the State's goals."

MIC's Hawaii Gas business has received binding commitments from lenders for the refinancing of its existing $80 million term loan and $60 million revolving credit facility. Closing of the facilities is subject to satisfaction of customary conditions including approval from the Hawaii Public Utilities Commission.

The new, five-year facilities include a reduction in interest rates on the term loan and revolving credit facilities of 50bps and 25bps, respectively, compared with the prior facilities. The $80 million term loan bears interest at a variable rate of LIBOR+1.75%. The variable rate component of the debt is expected to be hedged using interest rate swaps through the first four years of the facility. The revolving credit facility bears interest at a variable rate of LIBOR+1.25% and will remain unhedged.

About Macquarie Infrastructure Corporation

Macquarie Infrastructure Corporation owns, operates and invests in a diversified group of infrastructure businesses providing basic services to customers in the United States. Its businesses consist of a bulk liquid terminals business, International-Matex Tank Terminals, an airport services business, Atlantic Aviation, a gas processing and distribution business, Hawaii Gas, and several entities comprising a Contracted Power and Energy segment. MIC is managed by a wholly-owned subsidiary of the Macquarie Group. For additional information, please visit the Macquarie Infrastructure Corporation website at www.macquarie.com/mic. MIC-G

MIC is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of MIC do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of MIC.

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