CEBU PAC'S $250M RIGHTS TO PAY FOR DEBTS
Cebu Pacific’s (PSE: CEB) $250 million rights offer denominated in US dollars will be used to pay for its debts showing the financial turmoil the airline industry has come to grips with due to the COVID-19 pandemic.
In its disclosure to the Philippine Stock Exchange, the Gokongwei-led airline said the offer period for the dollar denominated preferred rights issue, will start on February 26 and end on March 4, 2021.
The net proceeds is aimed at strengthening the company’s balance sheets . The airline sees losses of P25 billion last year.
JG Summit Holdings will be paid the advances it gave to Cebu Pac worth $100 million.
A total of $71.3 million has been allotted for aircraft operating lease payments due this year.
Also, another $72 million has been allocated, from out of the proceeds of the rights offer, for principal debt repayments due this year.
Another $6.4 million will be for general corporate purposes such as passenger refunds.