Cebu Pacific Looking to Raise US$ 500 Million

Cebu Air is looking to raise up to US$500 million additional capital to strengthen its balance sheet and ensure that it is well-positioned to recover from the impact of the ongoing global COVID19 pandemic.

CEB gave notice to the PSE that it will be seeking approval for the issuance of up to US$250 million in new convertible preferred shares, as well as another US$250 million in privately placed convertible bonds.

It is envisioned that the approvals for the issuance of the preferred shares, as well as the convertible bond, will be taken up in a special shareholders meeting to take place on 20 November 2020.

The new convertible preferred shares will be made available to all stockholders, including JG Summit Holdings, Inc. (JGSHI), parent and 67% owner of CEB, giving opportunity for all investors to participate; while the privately placed convertible bonds, will be made available to a limited number of reputable international investors.

“We need to create a longer runway for CEB so that we can continue providing affordable and accessible air transport services for everyone,” said Lance Gokongwei, President and CEO of Cebu Pacific and JG Summit Holdings, Inc. “We strongly believe in the airline’s vital mission of providing fundamental and value-for-money air travel in and out our country, and its crucial role as a driver for economic growth.”

JGSHI will invest its proportionate share of the $250 million convertible preferred share, which will be offered to existing shareholders for subscription. JGSHI further commits to take on any balance of unsubscribed shares in this general offering.

CEB ended 2019 with a strong balance sheet. Its net debt to equity ratio end of H1 2020 is 1.9x.

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