IFLR1000

Cathay Pacific $5 billion recapitalisation plan

10/6/2020
Financing, Restructuring, Rights issue
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HK$ 39 billion

Announced

10/6/2020

Overview:

  • Cathay Pacific Airways has announced a HK39 billion ($5 billion) recapitalisation plan. 
  • The recapitalisation plan involves a proposed $2.5 billion issue of preference shares with detachable warrants; a proposed US$1.5 billion rights issue; and a proposed US$1 billion bridge loan facility.
  • The plan aims to provide the airline with liquidity and strengthen its capital in light of the COVID 19 pandemic and other challenges pertaining to widespread travel restrictions imposed by many countries.

Adam Majeed - IFLR1000

Jurisdiction:

Hong Kong SAR

Deal types:

Financing
Restructuring
Rights issue

Practice areas:

Financial restructuring
Capital markets : Equity
Restructuring

Industry sector:

Aviation

Firms:
Clifford Chance

Party: Aviation 2020 (Lender)

Lawyers: Amy Lo, Anthony Wang, Matt Fairclough, Paul Greenwell, Virginia Lee

DLA Piper

Party: Air China Ltd (Shareholder)

Linklaters

Party: Cathay Pacific Airways Ltd (Borrower)

Lawyers: Nathalie Hobbs, William Liu

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