Macquarie Infrastructure Company (NYSE:MIC) announced that no performance fee is payable to its management company, Macquarie Infrastructure Management (USA) Inc. (“MIMUSA”), for the fourth quarter of 2013. Performance fees are payable when the total return for shareholders of MIC exceeds that of a benchmark index.
The average closing value of the MIC accumulation index for the last 15 trading days of the fourth quarter was approximately 0.5% below the average closing of the accumulation index for the 15 trading days ended September 30, 2013. Based on the Management Services Agreement (“MSA”) between MIC and MIMUSA, the underperformance will be carried forward and must be exceeded in a future period before any performance fee can be paid.
MIC also announced that its Atlantic Aviation business has launched an upsizing of its Term Loan B facility in connection with its previously announced acquisition of a portfolio of fixed base operations from Galaxy Aviation. The terms of the $100 million upsizing are expected to be the same as those of the business’ current Term Loan B facility. The offering is expected to be completed at the end of the week of January 13, subject to market and other conditions.
In conjunction with the debt offering, MIC noted that Atlantic Aviation is expected to generate EBITDA for the full year 2013 that is at the top end of the Company’s guidance. Management had previously indicated that Atlantic Aviation was expected to generate EBITDA in a range of between $137 million and $145 million for the year.
MIC expects to publish its financial results for the fourth quarter and full year 2013 after the close of the markets on February 19, 2014. A conference call during which management is expected to discuss the 2013 results and the Company’s prospects for 2014 will be conducted the morning of February 20, 2014. Details of the conference call including dial-in numbers will be published in a separate press release.