VIRGIN Australia this morning announced plans to issue “unsecured notes” worth US$425 million, with the net proceeds to be partly used to fund the proposed acquisition of the 35% stake in the Velocity Frequent Flyer program held by Affinity Equity Partners (TD 16 Sep).
Virgin said that part of the funding strategy for the Velocity acquisition would also see it make an offer of A$ denominated notes to be listed on the ASX, subject to market conditions.
The notes will be offered only to persons “reasonably believed to be qualified institutional buyers,” the airline said.
Virgin divested the stake in Velocity five years ago for $336 million, and has agreed to buy it back for $700 million, returning to 100% ownership of the scheme.
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Source: traveldaily