PAL increase bond offer to $350M
MANILA, Philippines — Philippine Airlines (PAL) is increasing its maiden international bond sale by $50 million, days after major aircraft orders with Boeing and Airbus.
In a disclosure on Friday, PAL said its Cayman Islands unit, Primero Agila Ltd., priced the additional $50 million in fixed-rate, five-year senior notes, to be listed on the Singapore Exchange.
READ: PAL raises $300M from int’l bond offer
Primero Agila will add the additional notes into its $300 million 7.75 percent senior notes due 2031, which drew over $1.4 billion in orders—about 4.5 times the base offering.
PAL said the additional notes, priced on July 31, will settle on Aug. 6. Like the initial issuance, the notes carry a 7.75 percent coupon, with a reopening yield of 7.997 percent and price of 99.
The notes will be unconditionally and irrevocably guaranteed by PAL and Air Philippines Corp.
During the initial $300-million offering, PAL president Richard Nuttall said the airline’s international debt market debut was a “milestone” and a “vote of confidence” in its long-term strategy, market position and growth outlook.
The expanded bond offering follows PAL’s major aircraft orders from Boeing and Airbus at the Farnborough International Airshow.
In its first Boeing order since 2007, Philippine Airlines (PAL) bought 15 787-10 Dreamliners, with options for five more. Boeing will deliver the aircraft between 2031 and 2034.
At the same airshow, Philippine Airlines (PAL) ordered nine Airbus A350-1000s, with options for five more, to expand its long-haul fleet.
The Airbus will deliver the aircraft between 2034 and 2036. If PAL exercises all of its purchase options, its A350-1000 fleet will grow to 23 aircraft. The airline remains the only carrier in Southeast Asia to operate the aircraft type.
