3rd Sep 2020 17:04
(Alliance News) - Ryanair Holdings PLC on Thursday announced a share placing to raise EUR400 million in proceeds through an accelerated bookbuild so it is better placed to take advantage of future opportunities.
The Irish low-cost airline said the number of shares and the placing price for each will be determined after the bookbuild.
The company said: "So far, 2020 has proven to be the most challenging period in Ryanair's 35-year history and an unprecedented difficult environment for the wider European airline sector.
"The group believes that it has responded well and that the current environment is likely to result in long-term impacts for the sector which it expects will create opportunities for Ryanair to grow its network, and expand its fleet, to take advantage of lower airport and aircraft cost opportunities that are likely to arise."
The placing will better position the group to be able to move quickly and capitalise on such opportunities should they present themselves.
Davy is acting as sole bookrunner for the placing.
Ryanair had EUR3.90 billion in cash on June 30 as well as 333 unencumbered B737s, worth around EUR7.00 billion.
Ryainair said: "Over the medium-term Ryanair will continue to focus on cash generation and the repayment of approximately EUR1.90 billion of maturing debt which includes a EUR850.0 million Eurobond and GBP600 million raised under the UK's Covid Corporate Financing Facility maturing in June and March 2021 respectively."
The company hopes to accept the delivery of its first Boeing MAX-200 before the 2021 summer, as well as potentially up to 40 MAX aircrafts.
Ryanair Holdings shares closed down 0.6% at EUR11.66 on Thursday in London.
By Greg Roxburgh; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
RYA.L