Air Europa hires PJT Partners to raise money to repay government debt

Spanish airline Air Europa has hired adviser PJT Partners to raise cash through debt, and possibly a capital increase, to pay back debt owed to the government, a spokesperson for the airline said on Tuesday. The airline, which is 20% owned by British Airways owner IAG Group, is seeking funds to pay an outstanding package of loans worth a total E475m granted by the government during the pandemic, the spokesperson said. Air Europa would first raise money through a capital increase of potentially up to 20%, and then new debt to pay the government loans, according to a source with knowledge of the talks. Spanish website El Confidencial, which was ahead with the news, said that 20% of Air Europa could be valued at E240m. The Spanish airline said last November that several parties, including Air France-KLM, had expressed an interest in acquiring a 20% stake in the company.<br/>