Air NZ completes Crown share issue

By Phil Boeyen, ShareChat Business News Editor

Friday 18th January 2002

Air New Zealand (NZSE: AIR) has completed the issue of new shares to the Crown following last year's $885 million tax-payer funded rescue package.

The recapitalisation deal means there will be 2.166 billion new ordinary shares on issue and 1.28 billion new convertible preference shares.

The new ordinary shares, for which the Crown has paid 27 cents per share, will be listed on the NZSE from the start of next week and equate to just over 74% of the company.

Air NZ receives $585 million in return for the equity stake and the total number of ordinary shares after the issue will jump to 2.923 billion.

The new convertible preference shares, issued at 24 cents per share, will not be listed on the NZSE or the ASX. 1.25 billion of the shares represent the airline's obligation to repay a $300 million subordinated loan from the Crown last October with the remaining 29.86 million representing accrued interest on that loan.

However the money won't be hanging around in the airline's coffers for long.

Air NZ says it intends to repay all amounts outstanding to its unsecured bank lenders under loan facilities, totalling around $600 million, on Monday.

"The company is confident that following this repayment it will continue to have sufficient liquidity to meet its ongoing requirements although the company has been offered and is progressing arrangement of new credit facilities," Air NZ says.

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