19.04.2021 - 10:56 UTC
Cebu Pacific Air (5J, Manila Ninoy Aquino Int'l) has approved a USD250 million investment in the form of convertible bonds from both the International Finance Corporation (IFC), which is part of the World Bank, and an affiliate of the American private equity firm Indigo Partners, it revealed in a Philippine Stock Exchange filing on April 19.
The airline said its board of directors had approved the investment on April 16. The funds will emanate from the IFC Emerging Asia Fund and from Indigo Philippines LLC, which according to online business data sources was registered as a limited liability company in Wilmington, Delaware on December 1, 2020.
The disclosure did not specify how much of the USD250 million was being provided by the IFC and how much by Indigo Partners. IFC Emerging Asia Fund is a USD693 million private equity fund managed by the IFC Asset Management Company, and the filing described the IFC as the largest global development institution focused exclusively on the private sector in developing countries.
The number of underlying shares...
01.04.2021 - 06:09 UTC
Cebu Pacific Air (5J, Manila Ninoy Aquino Int'l) has listed 328,947,368 convertible preferred shares with a par value of PHP1.00 peso (USD0.02) per share for trading on the main board of the Philippine Stock Exchange (PSE), the company said in a stock exchange filing. BPI Capital Corporation acted as the sole global arranger, book-runner, and underwriter for the offer which should raise USD6.578 million if successful.
This followed the successful completion of its convertible preferred shares stock rights offering which ran from February 26 to March 4, 2021, during which it raised PHP12.49 billion (USD256 million) from existing shareholders.
“The funds raised from the offer will go towards strengthening the balance sheet of the company and ensuring it has sufficient runway to thrive in the new normal,” commented president and chief executive officer Lance Gokongwei.
“Cebu Pacific was in a unique situation among its airline peers in that it entered into the COVID-19 pandemic with a historically strong ability to generate free cash flow. It achieved a strong liquidity position as of December 31,...
12.03.2021 - 09:58 UTC
Cebu Pacific Air (5J, Manila Ninoy Aquino Int'l) has secured a PHP16 billion peso (USD206 million) 10-year loan from a syndicate of domestic banks in what is being punted as a sign of confidence in the carrier and the recovery of the Philippine economy.
The loan also coincides with the launch of the Philippines’ COVID-19 vaccination programme, which, it is hoped, will restore passenger confidence in flying.
The low-cost carrier in a statement said it would use the proceeds of the loan to fund its capital expenditures and for other general corporate purposes. The loan would also provide a cushion against unexpected working capital requirements that may arise from fuel price and foreign exchange rate volatility.
The loan is being forwarded by both government-owned financial institutions and private-sector lenders, including the Development Bank of the Philippines (DBP), the Land Bank of the Philippines (LBP), the Asia United Bank Corporation (AUB), Bank of the Philippine Islands (BPI), Metropolitan Bank & Trust Company (MBTC), and Union Bank of the Philippines (UBP).
Cebu Pacific President and...
28.01.2021 - 08:28 UTC
Cebu Pacific Air (5J, Manila Ninoy Aquino Int'l) parent Cebu Air Inc. will stage a USD250 million share offering on the Philippine Stock Exchange from February 26 to March 4 to help the loss-making carrier pay debts, payments to lessors, and passenger refunds, the company announced in a disclosure.
“Due to [the Covid-driven] exceptional change in market conditions and industry dynamics, the corporation saw the urgent need to fast-track its business transformation [which] involves right-sizing of network and fleet to meet new demand, and improvement of operations efficiency through process and policy enhancements and digitalization, among others. This places the corporation in a better position to respond to this harsh reality,” the January 22 filing said.
The fundraising initiative will involve the sale of convertible preferred shares to existing stockholders, offered at a price range of between USD0.74 and USD0.84 per share.
The move is one half of a larger USD500 million package the airline announced on October 8 last year, which also includes raising USD250 million by offering convertible bonds.
The company...
