News: AIR UPDATE 1-Virgin Australia secures new loan from major partners

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SYDNEY, March 21 (Reuters) - Virgin Australia Holdings Ltd (VAH) said it secured a A$425 million ($323 million) 12-month loan facility with its four major shareholders - Air New Zealand (AIR), Etihad Airways, Singapore Airlines and Virgin Group - as part of a structural review.

Virgin Australia, which competes with No. 1 Australian carrier Qantas Airways Ltd (QAN), said the review will include an assessment of its mix of debt and equity capital.

The carrier reported in February that it had swung to a half-year profit as it cut costs and attracted more big-spending corporate passengers. It also forecast a return to profitability for the full year.

In a statement on Monday, airline Chairman Elizabeth Bryan said the carrier has finished a five-year transformation "from a low cost carrier to a diversified airline group" and now it wants to restructure its balance sheet to "generate long-term growth and value for shareholders".

Chief Executive Officer John Borghetti added that the new loan facility will give the company additional flexibility in the short term. The facility would be subordinated to Virgin Australia's existing debt, and would be split between the four shareholders proportionally to their Virgin stake.

Air New Zealand is Virgin's biggest shareholder with 25.9 percent, followed by Etihad with 24.2 percent, according to Thomson Reuters data.

On Friday, Virgin's shares fell 13 percent to their lowest close in a year, as a bounce in the oil price hit transport companies. ($1 = 1.3170 Australian dollars)