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Virgin starts talks on $450m debt to repay Bain, prepare for ‘float’

Brisbane based Virgin is reportedly negotiating on debt of $450 million ahead of a float later this year.

Mar 13, 2023, updated Mar 13, 2023
Virgin's joint tender deal with Alliance has been rejected by the ACCC. (Pic supplied)

Virgin's joint tender deal with Alliance has been rejected by the ACCC. (Pic supplied)

The revived airline, which is now operating in a booming domestic tourism industry, is raising the funds to repay its owner Bain Capital, according to reports from Reuters and others.

Goldman Sachs and UBS were part of the debt negotiations, according to Reuters.

The markets are also alive with speculation that the company has started a roadshow with Australian fund managers ahead of the float.

Reports suggest it could occur in May with a value of about $3 billion, but Bain was expected to retain a majority stake in the company which it bought for about $700 million, plus debt.

The company collapsed in 2020 with debts above $7 billion and was forced to slash thousands of jobs as it went into administration.

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Virgin has yet to confirm the debt negotiations.

It now has about a third of the domestic market and has rebuilt its fleet. Its main competitor Qantas has also returned to profit after the devastating years of the pandemic when it survived on government handouts. It has also benefitted from the domestic travel boom and reported a first half underlying profit of $1.35 billion.

 

 

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