VA raises US$425m

Travel Daily - - News -

VIR­GIN Aus­tralia this morn­ing an­nounced plans to is­sue “un­se­cured notes” worth US$425 mil­lion, with the net pro­ceeds to be partly used to fund the pro­posed ac­qui­si­tion of the 35% stake in the Ve­loc­ity Fre­quent Flyer pro­gram held by Affin­ity Eq­uity Part­ners (TD 16 Sep).

Vir­gin said that part of the fund­ing strategy for the Ve­loc­ity ac­qui­si­tion would also see it make an of­fer of A$ de­nom­i­nated notes to be listed on the ASX, sub­ject to mar­ket con­di­tions.

The notes will be of­fered only to per­sons “rea­son­ably be­lieved to be qual­i­fied in­sti­tu­tional buy­ers,” the air­line said.

Vir­gin di­vested the stake in Ve­loc­ity five years ago for $336 mil­lion, and has agreed to buy it back for $700 mil­lion, re­turn­ing to 100% own­er­ship of the scheme.

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