LONDON (Dow Jones)--British Airways (BAY.LN), a U.K. airline, said Friday it plans to raise GBP600 million of cash funding to ensure it has strong liquidity consistent with the current difficult trading conditions.
MAIN FACTS:
-Launches GBP300 million convertible debt issue, which will be conditional on approval from shareholders.
-Funding expected to add GBP600 million of further liquidity bringing it to total of GBP2 billion.
-Revenue of GBP1.98 billion expected in first quarter ending June 30.
-Operating loss of around GBP100 million, which is slightly better than market expectation.
-GBP1.25 billion of cash and general facilities of around GBP130 million as at June 30.
-Securities will be senior unsecured convertible bonds due in 2014 which will be convertible into 15-20% of issued ordinary share capital of British Airways.
-Final size of offering will be determined at the time of pricing, which expected to be later Friday.
-Eligible existing institutional shareholders will be given opportunity to take up a pro rata allocation if they wish.
-Agreed terms with trustees of defined benefit pension schemes in U.K. to release some bank guarantees back to airline.
-Guarantees were provided in 2006 and were accessible by trustees only in event of airline's insolvency.
-Consequently up to $540 million (approximately GBP330 million) of bank facilities will become available for airline to draw in cash at any time until June 21, 2012.
-Already obtained facilities of more than $3 billion (GBP1.9 billion) specifically against future aircraft deliveries.
-Bookbuilding process will close prior to announcement of the final terms of convertible bonds which is expected to be made Friday and closing is expected on or about Aug. 13.
Source : http://online.wsj.com/article/BT-CO-20090717-701369.html
MAIN FACTS:
-Launches GBP300 million convertible debt issue, which will be conditional on approval from shareholders.
-Funding expected to add GBP600 million of further liquidity bringing it to total of GBP2 billion.
-Revenue of GBP1.98 billion expected in first quarter ending June 30.
-Operating loss of around GBP100 million, which is slightly better than market expectation.
-GBP1.25 billion of cash and general facilities of around GBP130 million as at June 30.
-Securities will be senior unsecured convertible bonds due in 2014 which will be convertible into 15-20% of issued ordinary share capital of British Airways.
-Final size of offering will be determined at the time of pricing, which expected to be later Friday.
-Eligible existing institutional shareholders will be given opportunity to take up a pro rata allocation if they wish.
-Agreed terms with trustees of defined benefit pension schemes in U.K. to release some bank guarantees back to airline.
-Guarantees were provided in 2006 and were accessible by trustees only in event of airline's insolvency.
-Consequently up to $540 million (approximately GBP330 million) of bank facilities will become available for airline to draw in cash at any time until June 21, 2012.
-Already obtained facilities of more than $3 billion (GBP1.9 billion) specifically against future aircraft deliveries.
-Bookbuilding process will close prior to announcement of the final terms of convertible bonds which is expected to be made Friday and closing is expected on or about Aug. 13.
Source : http://online.wsj.com/article/BT-CO-20090717-701369.html
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