Flybe Group to raise GBP150m through share issue

Flybe announced (20-Feb-2014) a share issue to raise net proceeds of approximately GBP150.0 million by way of a firm placing and placing and open offer of up to 141,501,920 new ordinary shares at an offer price of 110 pence per new ordinary share. The offer price represents a discount of 7.2% to the closing mid-market price of 118.5 pence per ordinary share on 19-Feb-2014, being the last business day prior to the announcement of the firm placing and placing and open offer. The offer is fully underwritten by Liberum Capital Limited. The Board believes that the offer will enable the Group to:

• strengthen the Group's balance sheet, improving operational flexibility and providing additional cash reserves to enable the Group to protect itself from unforeseen disruptions or occurrences;
• reduce fleet ownership costs by deploying capital to own aircraft with secured loans rather than full operating leases, thereby rebalancing Flybe's fleet financing structure towards ownership rather than operating leases;
• improve productivity by investing in improvements to the Group's IT and finance functions, resulting in greater robustness in infrastructure, cost savings and improved operating efficiencies within 6 to 12 months;
• enhance service to customers and develop its customer offering, product range and brand impact;
• expand the Group's branded scheduled commercial operation by developing new routes and bases within the UK within a 12 to 24 month timeframe; and
• expand the Group's white label flying.[more - original PR] [more - original PR - Proposal] [more - original PR - Prospectus]