Cebu Air to Raise $500 Million, Reduce Fleet and Network
(Bloomberg) — Philippine budget carrier Cebu Air Inc. plans to raise $500 million by selling preferred stock and bonds, joining airlines worldwide in trying to increase capital to help cope with the pandemic.
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A Cebu Air Inc. aircraft prepares to land at Ninoy Aquino International Airport (NAIA) in Manila, the Philippines, on Thursday, Feb. 13, 2020. In response to the coronavirus outbreak, the Philippine government has banned travel to Hong Kong, along with Macau and mainland China. Earlier this month, the Philippines’ Labor Department announced that it would offer financial assistance and temporary housing to workers who’d gotten stranded in the capital en route to their jobs overseas.
The proceeds from the $250 million convertible preference share issue and $250 million private placement of convertible bonds will be used to strengthen the carrier’s balance sheet, it said in a statement. First-half revenue at the airline controlled by the