CEBU AIR, Inc., the listed operator of budget carrier Cebu Pacific, announced on Wednesday that it has successfully raised nearly P12.5 billion from its stock rights offering.
“The total proceeds raised from the offer amounting to P12,499,999,984.00 will be used to strengthen the company’s balance sheet,” Cebu Air told the local bourse.
It noted the amount raised would help the company address its financial liabilities, including repayment of an advance by JG Summit Philippines Ltd., aircraft operating lease payments, principal debt repayments, and passenger refunds, among others.
Cebu Air’s stock rights offering of 328.95 million convertible preferred shares had a par value of P1 per share set at the price of P38 per entitlement right.
The offer period, which started on March 3, ended on March 9.
Once the convertible preferred shares are issued, Cebu Air would have a total of 929.26 million issued and outstanding shares divided into 600.32 million common shares and 328.95 million convertible preferred shares, the company said.
The listing date for the offer shares has been tentatively set on March 29.
On Friday last week, the company announced that its board approved a P16-billion, 10-year loan from local banks.
The loan will be used to fund the company’s capital expenditures and other general corporate purposes.
“The loan will also provide a cushion against unexpected working capital requirements that may stem from fuel price and foreign exchange rate volatility,” it also said.
Cebu Pacific currently operates less than a quarter of its pre-pandemic network at 32 domestic destinations as it runs half of its 73 aircraft.
Cebu Air shares closed 2.74% higher at P46.85 apiece on Wednesday. — Arjay L. Balinbin