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Bloomberg
Qantas Airways Ltd. is considering selling its first Australian-dollar bond since the improved fortunes engineered by Chief Executive Officer Alan Joyce prompted rating firms to return the company’s credit score to investment-grade status. Australia’s biggest carrier, which has been buoyed by cost cuts and a global slump in fuel prices, will talk with fixed-income investors from next Wednesday and may proceed with a local debt deal after that, according to an e-mailed statement Friday from Deutsche Bank AG, which is arranging the meetings along with Australia & New Zealand Banking Group Ltd. and HSBC Holdings Plc.
A deal would mark the Sydney-based airline’s first foray into the market since June 2014, when it priced A$400 million ($305 million) of bonds due in 2021 at a yield premium of 385 basis points above the swap rate. Since then, the so-called Flying Kangaroo has seen its credit score restored to BBB- by S&P Global Ratings and Baa3 by Moody’s Investors Service following more than two years as a junk-rated credit.
The company, which was relegated to speculative-grade status by S&P in December 2013 as its capacity war with Virgin Australia Holdings Ltd. spurred losses, has seen its position improve under the guidance of Joyce.