Virgin Australia priced its $732.6 million enhanced equipment notes offering at an average coupon of 5.5% over three tranches.
The notes are backed by a collateralised pool of 24 Boeing aircraft within Virgin Australia’s existing fleet.
The notes will be issued in three classes as Class A, Class B and Class C notes, backed by an underlying collateral pool of 21 737-800s, two 737-700s and one 777-300ER aircraft, with a weighted average age of 6.5 years.
"The issue received strong support from a large range of global investors with the order book multiple times over-subscribed," says Virgin Australia in a statement.
Proceeds from the notes issue will be used to repay existing financing facilities, as well as for general corporate purposes.
"This represents Virgin Australia’s first issue in the international debt capital markets. Virgin Australia is the first airline from the Asia-Pacific region and only the fourth non-US airline globally to access the EETC market. The transaction is part of our on-going commitment to diversify our funding sources and further supplement the company’s liquidity position,” says Virgin Australia’s chief financial officer Sankar Narayan.