Macquarie Infrastructure Corporation and KKR have signed a definitive agreement for MIC to sell its Atlantic Aviation business to KKR for USD4.475 billion in cash and assumed debt and reorganisation obligations. Atlantic Aviation operates one of the largest networks of fixed base operations (FBOs) in the US providing a full suite of critical services to the private aviation sector.
MIC expects to receive USD3.525 billion at closing following the reorganisation of MIC into a limited liability company, Macquarie Infrastructure Holdings LLC (MIH). The reorganisation was approved by MIC shareholders on May 6, 2021 and is expected be completed shortly before the closing of the Atlantic Aviation sale.
The Atlantic Aviation sale is expected to result in cash proceeds of approximately USD3.298 billion being available for distribution to unitholders after a disposition payment by MIH to MIC’s external manager of approximately USD227 million. The disposition payment was calculated in accordance with the Disposition Agreement entered into by and between MIC and the Company’s external manager on October 30, 2019. The MIH board of directors is expected to authorise a cash distribution of approximately USD37.35 per unit following closing of the transaction.
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