Virgin Australia to Secure a Loan of up to A$450 Million Ahead of Its Proposed Re-Listing

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Virgin Australia, Australia’s second-largest airline, plans to have a loan of up to A$450 million ($296.4 million) from banks before its planned re-listing later this year.

According to sources, Virgin Australia is reportedly in talks with Goldman Sachs and UBS to pay its private equity owner Bain Capital and boost the airline’s financial standing ahead of its re-listing on the ASX.

The negotiations come after Bain Capital, Virgin Australia’s private equity owner, announced in January that it would explore the possibility of re-listing the airline. The US firm bought the ailing carrier for A$3.5 billion ($2.45 billion), including liabilities, after being placed in voluntary administration last year.

“It’s not outside the realms of possibility. It’s a lot faster than we thought it would be, and we are flattered that this soon after becoming a new company and starting from scratch, we’re in a position where we’re having these conversations because it’s extraordinary,” VA CEO Jayne Hrdlicka said regarding the issue of a return to public ownership as early as 2023.

VA announced last month that it had appointed Goldman, UBS, and Barrenjoey as its lead managers for the potential initial public offering (IPO.)

Meanwhile, Bain Capital’s CEO Mike Murphy has expressed his confidence in the future of Virgin Australia: “Led by CEO Jayne Hrdlicka, the team at Virgin Australia is doing fantastic work and has delivered an impressive transformation since the very challenging phase of COVID and administration.”

Virgin Australia has achieved a remarkable turn-around, reporting a full-year profit for the first time in seven years. This is due to the hard work of Chief Executive Jayne Hrdlicka and her team, who have worked tirelessly since joining the company to ensure its success despite the pandemic’s devastating impact on travel worldwide.

Ultimately, the loan indicates that Virgin Australia is progressing toward recovery and looking forward to re-listing and expanding its operations nationwide.

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