UK leisure specialist Jet2 plc says it has raised GBP422 million pounds (USD584.2 million) via a new share issuance to existing shareholders and new investors.
In a stock market filing, the Jet2 (United Kingdom) (LS, Leeds/Bradford) parent said it had grossed total proceeds of approximately GBP422 million through the fundraise which comprised 35,166,654 Placing Shares and subscriptions for 593,561 Retail Shares, in each case at a price of GBP1.18 (USD1.63) per ordinary share.
The fundraise, which Jet2 plc said was significantly oversubscribed, represented 20% of its existing issued ordinary share capital immediately prior to the placing. Canaccord Genuity and Jefferies acted as joint global coordinators, joint bookrunners, and joint brokers while Cenkos Securities plc acted as nominated adviser.
"Based on the indicative scenario planning undertaken by management, the Board believes that the proceeds will provide sufficient liquidity on an extended and likely unpredictable shutdown basis to deal with this continually challenging trading environment," Philip Meeson, Executive Chairman of the Group, commented.
"Furthermore, the Directors believe the Fundraise will enable management to continue to adopt a decisive, but prudent, responsible financial management approach; take longer-term strategic decisions to support sustainable long term profit growth; and improve the ability for Jet2 to exit the pandemic in a stable commercial position so that it is well-positioned to capitalise on the upturn opportunity when it arrives. The Board remains of the belief that once able to do so, our Customers will be determined to enjoy the wonderful experience of a well-deserved Jet2 holiday and that Jet2.com and Jet2holidays will continue to have a thriving future, taking millions of UK holidaymakers annually to the Mediterranean, the Canary Islands and to European Leisure Cities."
Jet2 has cancelled its flight programme until at least April 15 in response to the latest set of UK travel restrictions which entail costly measures for travellers, including hotel quarantine and multiple Covid-19 tests for incoming passengers.
In its results for the six months to September 30, Jet2 reported a pre-tax loss of GBP68.7 million (USD95.1 million) citing an over 90% decline in passenger numbers during the 2020 summer season.
