CEBU AIR CLOSES RIGHTS OFFER
Cebu Air, Inc has announced the successful completion of its rights offering of 328,947,368 Convertible Preferred Shares with a par value of Php 1.00 per share, with a price of Php 38.00 per Entitlement Right.
Accordingly, the Entitlement Rights have been fully subscribed and paid.
The total proceeds from the offer amounting to PHP 12,499,999,984,068 will be used to strengthen the company's balance sheet by providing liquidity to address its financial liabilities.
Proceeds from the rights offer are to answer for (a) PHP 4.805 billion allocation for repayment of an advance by JG Summit Philippines Ltd.; (b) PHP 3.913 billion allocation for aircraft operating lease payments due in 2021; (c) PHP 3.328 billion allocation for principal debt repayments due in 2021; and (d) PHP 0.384 billion allocation for general corporate purposes, which are primarily for passenger refunds in case cash inflows from operations become insufficient as a consequence of the COVID-19 pandemic's impact to health and travel concerns.
Earlier, an exempt transaction was issued by the SEC last 29 January 2021, as amended on 11 February 2021. On 20 January 2021, the Philippine Stock Exchange (PSE) approved CEB's application for the listing of additional shares on the PSE.
Both the SEC's and PSE's approval are subject to CEB's compliance with all post-approval requirements of the aforementioned, respectively, including the company's pending application for the increase of authorized capital stock.
BPI Capital Corporation acted as the Sole Global Arranger, Bookrunner, and Underwriter for the Offer.