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Regional Express (ASX:REX) raises $150M through PAG deal

Industrial
ASX:REX      MCAP $88.30M
16 March 2021 17:30 (AEST)

Regional Express (REX) has completed its investment transaction with PAG Regulus to raise up to $150 million.

With a head office in Sydney, REX is Australia’s largest independent regional and domestic airline, operating a fleet of 64 aircraft to 61 destinations throughout the country.

The company will use the capital raised exclusively to fund its domestic operations, with the first tranche of $50 million already drawn down and secured convertible notes issued to PAG.

The remaining balance of $100 million will be available for drawdown over three years.

Meanwhile, Regional has appointed two new non-executive directors, Sid Khotar and Lincoln Pan, to the company’s board.

The appointees were both nominated by PAG under the investment agreement.

Regional Express shares are up 3.08 per cent, trading at $1.68 each at 4:43 pm AEDT.

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