MAS to allocate $327m in PDPs through rights issue

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Malaysia Airlines (MAS) is planning to spend Malaysian ringgit (M$) 987 million in capital expenditures from the proceeds of its M$3.07 billion rights issue, according to the prospectus.

The Malaysian flag carrier will fund pre-delivery payments for 17 Boeing 737-800s and five Airbus A330s for the next two years.

If the rights issue is fully allocated MAS will use M$1.31 billion in general working capital purposes and M$987 million in capital expenditures.

Group's borrowings at 31 December 2012 totalled M$9.55 billion and MAS also plans to repay M$777 million from the proceeds of the right issue.

MAS is issuing up to 13.3 billion rights shares on the basis of four right share for every existing ordinary share of M$0.1 under the transaction.

The carrier fixed the issue price at M$0.23 per rights shares as it seek to raise up to M$3.07 billion in gross proceeds.

CIMB Investment Bank is the MAS's adviser on the rights issue and the capital restructure.