50 SKY SHADES - World aviation news

Etihad & Co. hit bond market in bid to raise $1bn

Download: Printable PDF Date: 13 Sep 2015 14:20 category:
Publisher:
Etihad & Co. hit bond market in bid to raise $1bn - Finance publisher
Tatjana Obrazcova
Source: Ch Aviation

Etihad Airways and several of its equity partners and subsidiaries have set up a Dutch limited liability private company - EA Partners1 BV - ahead of a USD1 billion bond issuance later this week.

Funds raised through the issuance will be used to settle debt obligations attributed to the seven obligors which include Etihad Airways PJSC (up to USD245 million or 18.85% of total), Air BerlinPLC (up to USD245 million), Jet Airways (India) Limited (up to USD210 million equivalent), AlitaliaSocieta Aerea Italiana S.p.A. (up to USD245 million), Air Serbia a.d. Belgrade (up to USD105 million), Air Seychelles Limited (up to USD40 million) and Etihad Airport Services LLC (up to USD210 million).

"The purpose of the proposed transaction is to provide a financing platform to the airline, cargo and ground services businesses that are part of Etihad's partner network. Air Berlin and Air Seychelles plan to use the proceeds of their debt obligations mostly for refinancing purposes whereas Etihad Airways, Etihad Airport Services, Air Serbia, Jet Airways and Alitalia intend to use the proceeds mainly to finance capex and/or working capital and for other general corporate purposes," a Fitch ratings assessment said. 

Overall, despite Etihad's strong standalone credit quality (A/Stable), Fitch states the other carriers' individual weaker profiles have warranted a 'B-(EXP) with a Stable Outlook' rating.

A series of roadshows is planned in London and the Middle East this week and is organized by US investment bank Goldman Sachs and two boutique advisers, ADS Securities of the UAE and United Kingdom-based Anoa Capital.



Loading comments for Etihad & Co. hit bond market in bid to raise $1bn...


Recommended

Norwegian wins two coveted accolades at the Airline Economics Aviation 100 Awards

Norwegian received two coveted accolades at The Aviation 100 Awards held in Dublin, Ireland on Monday 20thJanuary. The Aviation 100 awards ceremony celebrates the years’ most outstanding perform...

First PD-14 aircraft engine arrived to Irkutsk aviation plant for the installation on MC-21

In January PD-14 aircraft engines were delivered from UEC-Perm Engines to Irkutsk Aviation Plant (IAZ). They will be installed on Russian MC-21-300 airliner the flight tests of which will start in the...

First Flight of New Boeing 777X successfully completed

First Flight of New Boeing 777X successfully completed,entering the next phase of its rigorous test program! The 777X took off in front of thousands at Paine Field in Everett, Washington, fo...

Liebherr Technology on board of Boeing 777X Maiden Flight

Liebherr-Aerospace congratulates The Boeing Company on a successful first flight for the new 777X airplane! Dr. Klaus Schneider, Managing Director at Liebherr-Aerospace Lindenberg said: &ldquo...