Cebu Pacific outlines $250m convertible preferred shares issue

Cebu Pacific has outlined the details of a $250m stock rights offering, which it intends to use to finance its debt obligations. The low-cost carrier plans to issue convertible preferred shares priced between $0.74 and $0.84 each, it said in a 25 January disclosure to the Philippine Stock Exchange. The proceeds will be used to settle financial liabilities, which comprises repaying a $100m advance by JG Summit Philippines, $71.3m for aircraft lease payments due 2021, $72.3m for principal debt repayments due 2021, and $6.4m for general corporate purposes such as passenger refunds. The rights issue will be offered from 26 February to 4 March 2020. Cebu Pacific’s board approved the stocks rights offering on 7 October, as part of a business transformation exercise that “involves right-sizing of network and fleet to meet new demand” and “improvement of operations efficiency through process and policy enhancements and digitalisation”.<br/>