CEBU Air, Inc., the private operator of budget airline Cebu Pacific, announced on Tuesday that it had completed three major fund-raising transactions aimed at addressing the disruptions caused by the coronavirus pandemic.
The company completed its “business transformation fund-raising plan raising a total of P40.5 billion ($845 million) in three tranches to face the COVID-19 (coronavirus disease 2019),” Cebu Air said in a statement to the stock exchange.
Cebu Air said a P16-billion ($335 million) term loan facility was provided by a group of Philippine government financial institutions and private banks.
There was also a P12.5-billion ($260 million) convertible preferred shares rights issuance backed by the company’s key shareholder, CPAir Holdings, Inc., which is a JG Summit company.
Cebu Air also secured a $250-million investment in the form of convertible bonds from International Finance Corp., IFC Emerging Asia Fund, and Indigo Philippines LLC.
“This series of successful fund-raising exercises is part of a broader proactive and comprehensive crisis response started in early 2020 including an operational transformation plan to reposition the business for the new normal which was strongly supported by lenders, lessors, and shareholders,” it said.
On Monday, Cebu Air reported P7.3 billion in first-quarter net loss attributable to equity holders versus the net loss of P1.18 billion in the same period a year ago.
The company said it was “further engaged in the planning [of] staff right-sizing in addition to further optimization and digitalization of processes.”
Cebu Air shares closed 1.02% lower at P43.30 apiece on Tuesday. — Arjay L. Balinbin
