CEBU AIR, Inc., the operator of Cebu Pacific, a listed budget airline, reported on Wednesday that almost P12,5 billion had been effectively leveraged from its inventory.

“To reinforce the balance sheet of the corporation, the total proceeds produced from this offer amount to P12,499 999,984,00 will be used,” Cebu Air said to the local stock exchange.

It pointed out that the money collected would help the organization in dealing with its financial obligations, including payment of JG Summit Philippines Ltd. advances, aircraft leasing fees, main debt reimbursements, and passenger refunds, among others.

A par value of P1 per share was set at P38 per rights of entitlement to a stock offering of 328.95 million convertible preferred shares of Cebu Air.

On March 9, the bid date began on March 3, 2011.

After the issuance of the preferred convertible securities, Cebu Air will have provided and evolving shares totalling 929.26 millions, divided into common stocks of 600.32 million, and preferred shares of 328.95 million, according to the business

On 29 March, the listing date was fixed for the bid shares.

Last Friday, the firm revealed it had approved a 10-year loan from local banks, which was approved by its management.

The loan is used for the finance and other general company needs of the company.

“The credit would also cushion unforeseen working capital conditions arising from the price of gasoline and fluctuations of foreign exchange rates,” he stated.

At 32 domestic destinations, Cebu Pacific actually operates fewer than a fifth of the prepandemic network, running half its 73 aircraft.

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