The NZ$2.2 billion (US$1.53b) as part of a major capital raise to shore up the airline’s balance sheet as it prepares to fly out of the pandemic.
According to Air New Zealand chairwoman Dame Therese Walsh, the capital raise would allow the airline to “survive, revive and thrive”.
The recapitalisation package is in three parts:
• A $1.2 billion pro-rata renounceable Rights Offer, giving eligible shareholders an opportunity to buy additional shares at a discount to the prevailing share price. The NZ Government, which holds 51 per cent of the airline, will participate to retain its shareholding.
• A $600 million issuance of redeemable shares to the Crown, of which approximately NZ$400 million is intended to refinance through an approximately NZ$600 million debt issue, and
• A new $400 million Crown loan to replace the existing loan facility, which can be drawn through to January 2026.
“While there will still be bumpy skies ahead over the next few years, the moment is right for Air New Zealand to raise equity, recapitalise its balance sheet and repay the loan it received from the Crown during the Covid crisis. This is an important step in refuelling for our recovery,” Ms Walsh said.
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