PAL wraps up $150-M loan for 2015 capex
Flag carrier Philippine Airlines Inc. (PAL) is set to conclude a $150-million loan facility to partially finance its capital expenditures this year, particularly the purchase of five brand new Airbus aircraft.
PAL president and chief operating officer Jaime Bautista said in an interview that the airline has already finalized talks with two financial institutions to provide funds for the acquisition of brand new aircraft.
“We are looking at additional $150 million from foreign banks until June. It is all set but we have yet to finalize,” Bautista told reporters.
He refused to given more details including the identity of the financial institutions saying the airline is bound by a confidentiality agreement.
PAL has earmarked $280 million for its capital expenditures this year. About $250 million would be used for the acquisition of five A321 aircraft and another $30 million for spare parts.
Bautista said PAL took the delivery of three A321 since January this year and is scheduled to receive two more A321 in May and June.
PAL successfully convinced Airbus to defer the delivery of the remaining 38 A321 aircraft to 2024 instead of 2020 after the Tan Group bought back the stake of diversified conglomerate San Miguel Corp. (SMC) in the national flag carrier.
The Tan Group through Buona Sorte and Horizon Global Investments bought back the 49-percent interest of SMC’s San Miguel Equity Investments Inc. last Sept. 15 for a total consideration of $1.3 billion.
SMC through San Miguel Equity Investments Inc. (SMEII) bought a 49-percent stake in Trustmark Holdings Corp. in April 2012 for a total consideration of $500 million. It embarked on an ambitious massive fleet renewal program involving the acquisition of 100 brand new aircraft with orders of 65 brandnew Airbus aircraft worth close to $ 10 billion.
Trustmark owns and controls 89.78 percent of the issued and outstanding shares of PAL Holdings that owns 98.27 percent of PAL.
Earlier, Bautista said PAL is also looking for brand new aircraft for its long-haul operations to beef up its existing fleet of six Boeing 777-300ER and six Airbus A340-300.