Cebu Air sets dividend rate, conversion price for P12.5-B share sale
The operator of budget airline Cebu Pacific finalized the pricing details of a P12.5-billion share sale set in March this year.
Cebu Air Inc., the carrier’s listed operator, said the sale would involve a convertible preferred share offer to existing stockholders.
The shares will pay a dividend rate of 6 percent a year while the conversion price was set at P38 a share.
The company’s shareholders will be entitled to one convertible share for every 1.825 shares, the disclosure showed.
A total of 328.95 million shares will be offered from March 3 through March 9 this year. The company said the target listing date was set on March 29.
Cebu Air rose 1.4 percent to P50.70 per share on Tuesday.
The fundraising measure was part of ongoing efforts to shore up its financial position to weather the COVID-19 pandemic.
Cebu Air said P4.8 billion had been allocated for paying advances made by affiliate JG Summit Philippines Ltd. and P3.33 billion for debt repayments due in 2021.
It will further spend P3.9 billion for aircraft operating lease payments due this year and another P384 million for general expenses and passenger refunds. INQ
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