Virgin Australia Starts Capital Review, Loans A$425 Million

   By Rebecca Thurlow 
 

SYDNEY--Virgin Australia Holdings Ltd. (VAH.AU) said Monday it has secured a 425 million Australian dollar (US$323 million) loan facility from its four major shareholders as it commences a review of its capital structure.

Air New Zealand Holdings Ltd. (AIR.NZ), Etihad Airways, Singapore Airlines Ltd. (C6L.SG) and Virgin Group have provided the 12-month loan facility, which the Australian carrier said will provide it with financial flexibility while it conducts the review.

Virgin Australia said the review will look at the company's mix of debt and equity capital and assess operational initiatives to enhance cash flow and profitability.

"Having achieved a significant transformation in the last five years, the Virgin Australia Group is now well placed to deliver ongoing growth and choice to Australian travellers," said Chief Executive Officer John Borghetti.

"One of the key pillars of our Virgin Vision strategy is to optimise the Group's balance sheet, and the group has had an ongoing program in place to achieve this goal," Mr. Borghetti added. "Now is an appropriate time to embark on the next phase of this program by taking steps to ensure the Group has a capital structure that supports its strategic objectives."

-Write to Rebecca Thurlow at [e-mail]

(END) Dow Jones Newswires

March 20, 2016 18:11 ET (22:11 GMT)

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