Cebu Air is looking to raise up to US$500 million
additional capital to strengthen its balance sheet and ensure that
it is well-positioned to recover from the impact of the ongoing
global COVID19 pandemic.
CEB gave notice to the PSE that it will be seeking
approval for the issuance of up to US$250 million in new
convertible preferred shares, as well as another US$250 million in
privately placed convertible bonds.
It is envisioned that the
approvals for the issuance of the preferred shares, as well as the
convertible bond, will be taken up in a special shareholders
meeting to take place on 20 November 2020.
The new convertible preferred shares will be made
available to all stockholders, including JG Summit Holdings, Inc.
(JGSHI), parent and 67% owner of CEB, giving
opportunity for all investors to participate; while the privately
placed convertible bonds, will be made available to a limited
number of reputable international investors.
“We need to create a longer runway for CEB so that
we can continue providing affordable and accessible air transport
services for everyone,” said Lance Gokongwei, President and CEO of
Cebu Pacific and JG Summit Holdings, Inc. “We strongly believe in the
airline’s vital mission of providing fundamental and
value-for-money air travel in and out our country, and its crucial
role as a driver for economic growth.”
JGSHI will invest its proportionate share of the $250
million convertible preferred share, which will be offered to
existing shareholders for subscription. JGSHI further commits to
take on any balance of unsubscribed shares in this general
CEB ended 2019 with a strong balance sheet. Its
net debt to equity ratio end of H1 2020 is 1.9x.