The minimum regulated revenue guarantee protects debt payment not the profits of Bermuda Skyport Corporation Ltd. (Skyport); and that the obligation goes away when the debt is paid off.
The regulated revenue guarantee is for the sole support of lenders and not Skyport or its shareholders. No cash flows from the revenue guarantee can ever flow to Skyport investors as the funds can only be paid into a segregated account for payment to the lenders.
Without the minimum revenue guarantee, the project would not be able to raise the necessary funds to finance the redevelopment of the airport and the Government would be required to make a large upfront grant, which is not allowed under the entrustment. The minimum revenue guarantee significantly enhances the credit profile of the Project. Current forecasts, even under an extreme downside scenario, will not result in the guarantee being triggered.