Virgin Australia Holdings Limited
(ASX:VAH) has launched into a $350 million equity raising to boost its balance sheet.
Australia’s second largest carrier will undertake a 5 for 14 pro rata accelerated non-renounceable entitlement offer at 38 cents per share.
Virgin has the backing of its major shareholders and strategic partners which include Air New Zealand, Singapore Airlines and Etihad Airways.
CEO John Borghetti says the capital raising is designed to enhance liquidly and the gearing position of the company.
Mr Borghetti also expects the funds to provide Virgin with extra flexibility and resilience so it may consolidate initiatives as part of its strategy.
Virgin Australia Holdings booked a net loss of $98.1 million in the 2013 financial year.
