Cathay Pacific raises $650 million in first U.S. dollar bond in 25 years
Reuters
Published May 10, 2021 09:26AM ET
By Scott Murdoch
HONG KONG (Reuters) - Hong Kong's Cathay Pacific has raised $650 million in its first U.S. dollar bond in 25 years, a term sheet seen by Reuters showed on Monday.
The deal consisted of 5.25-year senior unsecured notes priced with at 4.875%, the term sheet showed.
The final pricing was 32.5 basis points cheaper than indicated by the deal's book runners when launched earlier in Asia on Monday.
Cathay did not immediately respond to a request for comment from Reuters.
The airline will use the proceeds to bolster its working capital levels and fund general corporate purposes, the term sheet said.
A U.S. dollar bond will be the pandemic-hit carrier's first since 1996 as it primarily has issued its debt in Hong Kong dollars.
Cathay issued HK$6.74 billion ($869.51 million) of convertible bonds in Hong Kong dollars in January to shore up liquidity, prompting its shares to record their worst daily decline in more than 12 years.
The carrier's shares were up 1.8% on Monday.
Cathay said in March it was focused on preserving cash after posting a record annual loss of HK$21.65 billion, caused by a travel downturn, restructuring costs and fleet writedowns.
Passenger numbers fell by 98.7% compared with a year earlier, though cargo carriage was down by a smaller 32.3%.
Cathay had planned a U.S dollar bond issuance in 2019 at the peak of the pro-democracy protests in Hong Kong but pulled the transaction because of the price demanded by investors.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.