BAA plans to exchange euro, stg bonds for new debt

LONDON, July 14 (Reuters) - British airports operator BAA, bought by Spain's Ferrovial (FER.MC: Quote, Profile, Research) in 2006, said on Monday it had made significant progress on a plan to refinance its debt.

The company said it would exchange existing euro and sterling bonds totalling 2.5 billion euros ($3.93 billion) and 2.8 billion pounds ($5.60 billion) respectively for new securities.

It said a special committee of bondholders at the Association of British Insurers had informed the company the proposed refinancing was acceptable.

The refinancing has been in the works for over a year but has been hobbled by the global credit crunch. In recent weeks however it has gained traction as Ferrovial won backing from banks for a 7.65 billion pound loan and BAA started talks with debt investors.

(Reporting by Richard Barley; Editing by Erica Billingham)