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    QAN   AU000000QAN2

QANTAS AIRWAYS LIMITED

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Qantas Airways : sells $370 mln of bonds to boost liquidity, refinance

09/01/2020 | 01:30am EDT

* Bond has coupon of 5.25%, up from 2.95% issue in Nov 2019

* Will replace A$400 mln of bonds with 7.5% coupon

* One of world's few airlines with investment grade rating

SYDNEY, Sept 1(Reuters) - Qantas Airways Ltd said on Tuesday it had issued A$500 million ($369.90 million) of unsecured bonds with a coupon of 5.25% to help strengthen liquidity and replace maturing debt as it deals with plunging demand due to the coronavirus pandemic.

The airline said in a statement that the 10-year issue was oversubscribed. The coupon rate is higher than its last pre-pandemic issuance of a A$425 million, 10-year bond with a coupon of 2.95% in November.

The new issue was expected to be rated by Moody's at Baa2 with a negative outlook, according to the marketing materials seen by Reuters.

Qantas is one of the few airlines in the world to retain an investment grade rating during the pandemic. Southwest Airlines Co, also investment grade, issued $1.3 billion of seven-year bonds with a 5.125% coupon in June.

Qantas said it would use the funds in part to pay off A$400 million of bonds with a 7.5% coupon due to mature in June 2021, its only near-term maturity.

Those were issued in June 2014, when it was struggling financially and had lost its investment grade rating ahead of a successful turnaround plan that saw it restored.

To help weather the coronavirus crisis, which has stopped it flying international services and severely cut its domestic operations, Qantas raised A$1.5 billion of equity in June. It has also raised debt secured over some of its aircraft to give it extra liquidity.

The airline last month told investors it retained A$2.5 billion of unencumbered assets, including 46% of its fleet, land and spare engines. ($1 = 1.3517 Australian dollars) (Reporting by Jamie Freed; additional reporting by Wayne Cole; Editing by Kim Coghill)


ę Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
QANTAS AIRWAYS LIMITED 1.97% 5.69 End-of-day quote.17.32%
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Financials
Sales 2022 9 134 M 6 778 M 6 778 M
Net income 2022 -673 M -500 M -500 M
Net Debt 2022 4 711 M 3 496 M 3 496 M
P/E ratio 2022 -16,0x
Yield 2022 0,01%
Capitalization 10 714 M 7 952 M 7 951 M
EV / Sales 2022 1,69x
EV / Sales 2023 0,93x
Nbr of Employees 22 000
Free-Float 97,8%
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Number of Analysts 13
Last Close Price 5,69 AUD
Average target price 6,07 AUD
Spread / Average Target 6,65%
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Alan Joseph Joyce CEO, Executive Director & Managing Director
Vanessa Hudson Chief Financial Officer
Richard J. B. Goyder Chairman
Robert Marcolina Group Executive-Strategy, People & Technology
Barbara Kay Ward Independent Non-Executive Director
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