Virgin Australia announces outcome of capital structure review including USD626m equity raising

Virgin Australia Holdings Limited announced (15-Jun-2016) the outcome of a capital structure review and implementation of efficiency initiatives to strengthen its balance sheet and improve earnings and cash flow. The carrier proposed an AUD852 million (USD626.3 million) equity raising in the form of a one for one non-renounceable pro-rata entitlement offer to shareholders at a price of AUD0.21 (USD0.15) per share. Singapore Airlines, HNA Group, Virgin Group, Nanshan Group and Air New Zealand have made bonding commitments to take up their entitlements, while Singapore Airlines, HNA Group and Virgin Group have made binding commitments to contribute to the sub-underwriting of entitlements not taken up by other shareholders. The proposed offer, alongside a proposed AUD159 million (USD116.8 million) capital placement to HNA Group will raise total gross proceeds to AUD1.01 billion (USD742 million) in new equity capital. The carrier also plans to implement several initiatives to target net free cash flow savings increasing to AUD300 million (USD220.5 million) p/a by end FY2019. [more - original PR]