Air New Zealand raises NZ$1.2 billion

Air New Zealand has successfully completed its NZ$1.2 billion equity raise, which will be used to repay its government loan and strengthen its financial position for recovery. A bookbuild for about 274 million shares, which were not taken up in the initial offer round, were oversubscribed and offered to existing and new investors at 81 cents each, which was a 28-cent per share premium over the initial offer price of 53 cents. “The rights offer was structured to provide all eligible Air New Zealand shareholders with a fair opportunity to participate in the equity raise or receive value for their rights,” Air New Zealand board chair Dame Therese Walsh said. “We are delighted with the level of support shown for Air New Zealand by existing and new shareholders and to have been able to return value to those shareholders who did not or were ineligible to participate.” Trading of new shares issued under the capital raise rank equally with existing shares and were expected to begin trading on NZX and on ASX on Monday. Shareholders who did not participate were still able to receive value for their rights through the bookbuild process. Eligible shareholders who elected not to take up their entitlements and ineligible shareholders will receive NZ$0.81 for each share sold for their benefit in the Bookbuild. “The capital raised will allow us to repay the government loan and strengthen our balance sheet as part of the broader NZ$2.2 billion recapitalisation. The company continues to progress its debt capital markets transaction,” Walsh said. “Having refuelled, our full focus now turns to reconnecting New Zealand with the world and playing our part in New Zealand’s recovery from COVID-19.” For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Kay Rolland at [email protected]