Virgin Atlantic planning $223m in new financing

Bloomberg

Virgin Atlantic Airways Ltd. is set to raise 160 million pounds ($223 million), as part of a financing package to sustain the carrier ahead of the expected reopening of international travel in the coming months.
Richard Branson’s Virgin Group is set to provide the bulk of the funds, putting up about 100 million pounds. Another 60 million pounds will come from deferrals.
The carrier’s operations have been badly hit by the coronavirus pandemic and the resulting collapse of tourism and business travel. The company completed a 1.2 billion-pound recapitalisation in September 2020, which included a 200 million pounds from Branson, who founded the airline more than 30 years ago. The news of the latest investment was first reported by Sky News.
“We continue to bolster our balance sheet in anticipation of the lifting of international travel restrictions during the second quarter of 2021,” said a spokeswoman for Virgin Atlantic in an emailed statement. “This latest 160 million pound financing provides further resilience against a slower revenue recovery in 2021.”
In January, Virgin Atlantic sold two Boeing Co. 787 jetliners to fund the repayment of a loan from hedge fund Davidson Kempner Capital Management that formed the basis of its rescue last year. The sale and leaseback deal raised $234 million and after paying off the balance of the $170 million borrowed from New York-based Davidson Kempner at the height of the coronavirus crisis, the airline was left with 70 million pounds for its own funds.
Virgin Atlantic is 49% owned by Delta Air Lines Inc. and has cut more than 3,000 jobs and shuttered operations at London Gatwick airport as part of its survival strategy, which came after the UK authorities refused the carrier access to state funding that was used by half a dozen other airlines.