Cebu Pacific to raise $500M


    Cebu Air Inc. operator of the country’s leading budget carrier, Cebu Pacific (CEB) is raising up to $500 million in additional capital to strengthen its operation amid coronavirus disease (COVID-19) pandemic.

    In a disclosure to the Philippine Stock Exchange, CEB said it is seeking the approval for the issuance of up to $250 million in new convertible preferred shares, as well as another $250 million in privately placed convertible bonds. This will be taken up in a special shareholders meeting to take place on Nov. 20, 2020.

    The new convertible preferred shares will be made available to all stockholders, including JG Summit, giving opportunity for all investors to participate; while the privately placed convertible bonds, will be made available to a limited number of reputable international investors.

    CEB is raising this capital as part of its multi-pronged approach to working with capital providers, creditors, suppliers and all other stakeholders, especially its employees, to further strengthen its financial position in the midst of this COVID-19 crisis.

    “We need to create a longer runway for CEB so that we can continue providing affordable and accessible air transport services for everyjuan,” said Lance Gokongwei, president and CEO of Cebu Pacific and JG Summit Holdings Inc.

    JGSHI, parent and 67 percent owner of CEB, will invest its proportionate share of the $250 million convertible preferred share, which will be offered to existing shareholders for subscription. JGSHI further commits to take on any balance of unsubscribed shares in this general offering.