Singapore Airlines announced on August 19 that it will be using a further $2.2 billion out of the gross proceeds of the $8.8 billion raised from the rights issue to fund its operating expenses, settle its maturing fuel hedging trades and ticket refunds, aircraft purchases, and debt service.
The airline has already utilised $2.2 billion to repay the $2 billion bridge loan facility with DBS Bank on June 16.
See: SIA to use $2.2 bil from rights issue to repay bridge loan facility with DBS, fund operating expenses
Of the $2.2 billion, some $1.1 billion will go towards the funding of operating expenses, settlement of maturing fuel hedging trades and ticket refunds following the cancellation of flights in view of the continuing border controls and travel restrictions.
Another $0.2 billion will go towards aircraft purchases.
A further $0.9 billion has been applied towards debt service. This includes the redemption of SIA’s 10-year $500 million fixed rate notes on July 9, and the repayment of funds previously drawn under certain lines of credit, which continue to be in place as sources of liquidity.
Shares in SIA closed 10 cents lower, or 2.7% down, at $3.62 on August 19.
See also:
- SIA secures $10 bil from rights issue and secured and unsecured credit facilities to 'tackle challenges' posed by Covid-19
- SIA rights shares fully subscribed but shareholders snub MCBs
- Right issue price 'in line with market precedents', says SIA
- SIA plunges into 4Q loss of $732.4 mil as air travel collapses
- Singapore Airlines to raise $15 bil via rights issue of new shares, mandatory convertible bonds
- Temasek to lead $15 bil rescue of SIA
