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- Online travel agent Webjet (WEB) has priced its $250 million convertible note offering
- The notes can be converted into shares at $6.35, hold a term of five years and will return 0.75 per cent per annum on a semi-annual basis
- Webjet will use the funds to repay the $43 million existing debt, fund potential acquisitions and cover administrative expenses
- On the market this afternoon, Webjet is down 5.02 per cent and is trading at $5.30 per share
Online travel agent Webjet (WEB) has priced its $250 million convertible note offering.
The notes will hold a term of five years and will pay 0.75 per cent per annum on a semi-annual basis.
The notes will convert into shares at $6.35 per share. This represents a conversion premium of 22.5 per cent over WEB’s recent trading levels.
After commission, fees and expenses, net proceeds from the offering are expected to reach around $246 million.
Webjet will use the funds to repay its $43 million in existing debt, fund potential acquisitions and cover administrative expenses.
Goldman Sachs International is acting as sole global coordinator and joint bookrunner for the offering.
In February, the online travel agent reported its half-year results, which had been markedly hit by the ongoing COVID-19 pandemic.
The group’s interim revenue came in at $22.9 million, representing just over a tenth of what was recorded during the same period last year.
Profit also nosedived, falling from a $9 million net profit at the end of 2019 to a $132 million loss.
On the market this afternoon, Webjet is down 5.02 per cent and is trading at $5.30 per share at 1:41 pm AEDT.
