Singapore Air to Raise S$850 Million After Travel Collapses
Singapore Air to Raise S$850 Million After Travel Collapses
(Bloomberg) -- Singapore Airlines Ltd. plans to raise as much as S$850 million ($630 million) via the sale of convertible bonds as it seeks to increase liquidity amid a pandemic that’s wiped out travel demand.
The funds will be used for operating cash flow, to service debt and for capital expenditure, Singapore’s flagship carrier said in an exchange filing Thursday. The pricing of the convertible notes is expected shortly.
Singapore Airlines said Monday that it planned to raise additional liquidity in the debt capital markets and through a sales and lease-back deal after reporting its biggest quarterly net loss.
The airline has already raised S$11.3 billion through a rights offering and loans, and is cutting 20% of its workforce. The carrier’s cash burn rate has fallen to below S$300 million a month currently, from about S$350 million during the three months through July.
Read more: Singapore Air Unlikely to Find Profit in 2H: Earnings Outlook
HSBC Holdings Plc will help to manage the note sale.
©2020 Bloomberg L.P.