9-Apr-2021 9:57 AM

Air New Zealand defers equity capital raising

Air New Zealand announced (09-Apr-2021) the Crown and Air New Zealand agreed to defer its equity capital raise to allow time to assess a selection of evolving circumstances further. The carrier said the evolving circumstances include impacts from the coronavirus pandemic, the announcement of the Maintaining International Air Connectivity Scheme, vaccination programme timing, the potential implications for broader border reopenings, and the trans-Tasman bubble. The proposed capital raise is now targeted to be undertaken before 30-Sep-2021. To ensure the company has sufficient liquidity through the period until completion of the proposed capital raise, the existing facility with the Government has been renegotiated and Air New Zealand entered a binding terms sheet with the Crown to effect agreed arrangements. The loan facility will be increased by up to NZD600 million (USD423.6 million) in additional liquidity, bringing the total facility to NZD1.5 billion (USD1.1 billion). The facility term has also been extended through to Sep-2023 and the interest rate will be adjusted to reflect current market conditions. The airline continues to focus on managing its level of cash burn, and there have been no further drawdowns on the Crown facility since interim results, therefore current drawdowns on the facility remain at NZD350 million (USD247.1 million). [more - original PR] [more - original PR - II] [more - original PR - III]

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