AIR
21/03/2016 10:47
GENERAL
PRICE SENSITIVE
REL: 1047 HRS Air New Zealand Limited (NS)
GENERAL: AIR: Major Shareholders Provide Loan Facility to Virgin Australi
Air New Zealand advises that it has agreed to support Virgin Australia
Holdings Limited (Virgin Australia or the Company) by providing a new
unsecured term loan facility.
Air New Zealand (NZX: AIR), Etihad Airways, Singapore Airlines (SGX: SIA) and
Virgin Group will each separately provide funding via of a new loan facility
to Virgin Australia. This is an initial step in strengthening Virgin
Australia's liquidity while the Company commences a review of its capital
structure. The review will include an assessment of the appropriate mix of
debt and equity capital and operational initiatives to enhance Virgin
Australia's cash flow and profitability.
The facilities are for an aggregate amount of AUD425 million with pro rata
participation from each shareholder based on their relevant interest. The
facilities are for a term of 12 months and are based on arm's length
commercial terms.
Air New Zealand's portion of the loan facility to be funded to Virgin
Australia is AUD131.2 million (approximately NZD146.5 million).
Virgin Investments Limited will provide the loan facility. Virgin Group's
shareholding in the Virgin Australia Group is held by Corvina Holdings
Limited.
Ends
End CA:00279582 For:AIR Type:GENERAL Time:2016-03-21 10:47:24
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
