25th Jun 2020 08:49
(Alliance News) - Low cost airline easyJet PLC said Thursday it will raise GBP419 million through a placing, the proceeds of which will go towards enhancing the group's liquidity position and strengthening its balance sheet.
easyJet will issue 59.5 million shares at a price of 703 pence per share, which reflects a 5% discount to the group's closing price of 740 pence on Wednesday.
Shares in FTSE 250-listed easyJet were down 8.5% at 677.40 pence on Thursday morning in London.
BNP Paribas and Credit Suisse acted as joint global coordinators, joint bookrunners and joint brokers.
Of the shares, 39.7 million will be issued under easyJet's existing share capital authority, while the remaining 19.9 million shares will be conditional on shareholder approval at a general meeting to be held on or around July 14.
Alongside the proceeds from easyJet's sale and leaseback programme in the range of GBP250 million to GBP300 million, following the placing the group expects to have a cash balance in excess of GBP3 billion, allowing easyJet to handle further grounding or protracted recovery scenarios.
Late Wednesday, for the six months to the end of March, easyJet reported a widened pretax loss of GBP353 million, compared to GBP272 million the year before, on revenue that grew by 1.6% to GBP2.38 billion.
Following admission, easyJet will have 436.9 million shares issued overall.
By Dayo Laniyan; [email protected]
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