Connect with us

Hi, what are you looking for?


Cebu Air plans start of $250-M convertible preferred shares offering in Feb.

CEBU AIR, Inc., the listed operator of budget carrier Cebu Pacific, said on Monday it might start its $250-million convertible preferred shares stock rights offering on Feb. 26 as part of its fundraising plan.

In a disclosure to the stock exchange, the airline operator said it intends to use the proceeds to strengthen its balance sheet by providing liquidity to address its financial liabilities, including $100-million allocation for repayment of an advance by JG Summit Philippines Ltd.; $71.3-million budget for aircraft operating lease payments due this year; and $72.3-million budget for principal debt repayments, which are also due this year.

The net proceeds will also cover the $6.4-million budget for general corporate purposes, which are basically for ticket refunds “in case cash inflows from operations become insufficient” due to the pandemic, Cebu Air added.

The offer period is until March 4.

The company said its plans may still change, as they are dependent on the changing market conditions or new information regarding the cost or feasibility.

“The corporation’s cost estimates may also change as actual costs may be different from the budgeted costs,” it added.

Also on Monday, the low-cost carrier announced its latest offering to “boost passenger confidence.”

Cebu Pacific said it offers “COVID Protect,” an upgrade to the airline’s insurance plan, for P270.

“This upgrade, which will cover COVID-related hospitalization and treatments, is timely as the carrier aims to provide more passenger options,” the budget carrier said in an e-mailed statement.

With this insurance add-on, Cebu Pacific travelers who test positive for COVID-19 will get up to P1 million coverage for hospitalization and medical expenses, it added.

It said the insurance coverage starts on the departure day from origin and ends two hours upon arrival back at origin, with a maximum travel duration of 30 consecutive days. — Arjay L. Balinbin

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Almost one in five UK workers say they are likely to change jobs in the next 12 months as they seek better pay and...


Around 57 per cent of van owners feel discouraged from going electric due to a lack of charging points, according to a survey published...


Business and cycling groups have urged the government to reform its cycle to work scheme so it can be used by lower-paid and self-employed...


Beer drinkers could soon find it difficult to buy their favourite bottled beverage because of a shortage of glassware triggered by soaring energy costs,...


  Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their...


Notice of Annual Stockholders’ Meeting Notice is hereby given that the Annual Stockholders Meeting will be held on Monday, June 20, 2022 at 8:30...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...


As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.