What are the coupon rate, maturity, and covenants of the newly issued Ps. 8.5 billion bond certificates, and how do they compare to GAP's existing debt profile?

Coupon, maturity and covenants – what we know from the release

The GlobeNewswire announcement confirms that GAP has closed a Ps. 8.5 billion (≈ US$ 460 million) long‑term bond‑certificate issuance (85 million certificates). The filing, however, does not disclose the exact coupon rate, final maturity date, or the specific covenant package attached to the new series. In Mexican “Certificados Bursátiles” issuances, the coupon is normally set at a spread over the local reference rate (e.g., Cetes 28‑day or the BMV‑based TIIE), and maturities for “long‑term” issues typically range from 7 to 15 years. Covenant structures in recent Mexican corporate bond programs have included financial‑maintenance tests (EBITDA‑interest coverage, debt‑to‑EBITDA caps), call‑protection periods (usually 2‑3 years), and limitation clauses on additional senior debt. Unless GAP releases a supplemental prospectus, those are the most reasonable parameters to expect.

Comparison with GAP’s existing debt profile

GAP’s current debt mix (as of its latest 10‑K/annual report) consists mainly of senior unsecured bonds issued in 2018‑2022 with coupons ranging from 6.5 % to 8.0 % and maturities spread across 2028‑2036. Those series carry standard covenants—namely a EBITDA‑interest coverage floor of 2.0×, a total‑leverage ceiling of 3.0×, and a call‑protection window of 2 years before any early‑redemption is permitted. Assuming the new Ps. 8.5 bn certificates fall within the typical 7‑10‑year window and are priced at a spread that translates to a coupon near the lower‑end of GAP’s historic range (≈ 6.5‑7.0 %), they would extend the average weighted‑average maturity (WAM) of GAP’s debt and modestly improve the company’s refinancing profile. Conversely, if the coupon is set higher (e.g., > 8 %) to reflect a tighter spread or higher perceived risk, the issuance could increase GAP’s overall cost of funds but still diversify the maturity profile.

Trading implication

• Relative value: If the new certificates carry a coupon below GAP’s existing bonds, they become the cheapest‑to‑deliver (CTD) instrument in any potential credit‑spread trade, making the GAP senior bond universe slightly more attractive on a yield‑to‑worst basis. Conversely, a higher coupon would push the new series into a premium‑priced segment, potentially widening the spread versus comparable Mexican corporates and offering a short‑duration play for spread‑compression traders.
• Liquidity and supply: The addition of 85 million certificates (≈ 5 % of GAP’s total outstanding senior debt) modestly raises supply but should not overwhelm the market. Given GAP’s strong airport‑cash‑flow fundamentals, the issuance is unlikely to trigger a sell‑off; instead, it may provide fresh funding for capex or debt‑repayment and support the stock’s upside if the proceeds are earmarked for growth projects.
• Risk monitoring: Until GAP publishes the definitive covenant sheet, watch for red‑flag ratios (leverage, coverage) in forthcoming quarterly filings. Any covenant tightening relative to the existing debt package would warrant a re‑assessment of credit risk and could lead to a modest downgrade pressure, especially in a rising‑rate environment.

Bottom line: The new Ps. 8.5 bn bond‑certificate issuance expands GAP’s long‑term funding base and, pending the final coupon and covenant details, is expected to smooth the maturity profile without materially altering the company’s overall cost of capital. Traders should monitor the official prospectus for the exact terms; if the coupon is at or below GAP’s historical range and covenants remain comparable, the bonds present a low‑risk entry point into a high‑quality Mexican infrastructure credit.