Recapitalisation package to “help position the airline for recovery”.
Air New Zealand has just announced the launch of a capital raising program, including giving the opportunity to existing investors to buy NZ$1.2 billion worth of additional shares, as well as the issue of NZ$600 million in shares to the NZ Government and a new NZ$400 million Crown Loan.
The company said the recapitalisation aimed to help maintain the carrier’s investment-grade credit rating, and to support the execution of Air NZ’s strategic priorities.
Shares are being offered at A$0.49c each, a hefty 61.5% discount to the last trading price before Air NZ was placed into a trading halt this morning.
The proceeds will be used to repay an existing NZ$850 million Crown Loan as well as improve liquidity. The carrier said the earlier than expected opening of the New Zealand border this month would see its FY2022 full year result likely to be better than the NZ$800 million loss it forecast late in February.
More details in tomorrow’s issue of Travel Daily.
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