Pan-African low-cost carrier Fastjet has raised additional equity for the start of its operations next week in east Africa.
The start-up carrier has entered into a £5 million ($8 million) equity deal with Darwin Strategic, the majority owned subsidiary of Henderson Global Investors' Alphagen Volantis fund.
The facility has a three-year maturity.
Under the terms of the deal, the subscription price of any draw-down on the facility will be at a 5% discount to an agreed reference price determined during 15 trading days immediately following the delivery of a draw-down notice. Any exercise of the draw-down will have a volume commitment of a minimum of four times the average daily volume traded in Fastjet shares during the 15 days prior to activation, subject to certain restrictions.
As part of the deal, Fastjet issued a warrant instrument for Darwin to subscribe to up to 2 million ordinary shares at a subscription price of £0.053 per ordinary share. The subscription is exercisable over the three-year period.
Earlier this month, Fastjet announced plans to raise $2.4 million by issuing 42 million new ordinary shares at a value of £0.035. Upon completion the subscription shares will represent approximately 2.43% of the enlarged issued share capital of the company.
Fastjet plans to use the $2.4 million injection to explore the possibility of opening a base in southern Africa, following reports that it had been close to investing in South Africa's now-defunct 1time Airline.
It is scheduled to start operations with a fleet of three Airbus A319s on 29 November 2012.