Amadeus has moved to strengthen its liquidity raising capital by issuing bonds and shares worth a cumulative €1.5 billion.
The GDS and leading European travel technology firm has issued €750 million in new capital and €750 million in senior convertible bonds.
It said this is to “further strengthen its capital position and improve its liquidity to face the near-term uncertainty caused by the impact of COVID-19 on global travel”.
Amadeus said the move takes its liquidity to over €4 billion.
The new capital is in two forms:
- Approximately €750 million of new primary equity. 19,230,769 new shares have been issued at a price of €39.00, with a 5.8% discount to Amadeus last trading price;
- €750 million in senior convertible bonds, with a nominal price of €100,000 and a coupon of 1.5% have been issued. Unless previously converted, redeemed or purchased and cancelled, the Bonds will be redeemed on April 9, 2025.
Amadeus said the capital raise was conducted via an “accelerated bookbuild”, targeted at qualified investors, and has already been completed.
The firm added is part of a comprehensive program “to enable the company to confront even the most adverse scenarios, based on assumptions well below the latest projections for air travel by Iata”.
Airline body Iata has forecast a $113 billion loss in airlines in revenues globally in 2020, the equivalent of 19% of the total.
Amadeus had already announced a series of liquidity measures on March 23rd, including:
- Efficiency measures to reduce fixed costs and capital expenditure by an approximate annual run-rate of €300 million;
- Cancellation of the complementary dividend payment of €320 million scheduled for June 2020;
- An incremental €1 billion loan facility, entered into with a group of banks of reference, with a one-year term, adding to our currently existing liquidity composed of €1 billion of undrawn revolving credit facility and €660 million of cash.
Amadeus said its total liquidity position means it is well prepared to meet its financial commitments for 2020.
The firm said: “As the impact of COVID-19 continues to affect the travel industry, Amadeus’ priorities remain ensuring the health and well-being of our employees, supporting our customers, and protecting our own business in these unprecedented times.
“We believe we are positioned to withstand the current environment with strength, and we remain confident in our long-term, proven strategy for growth and shareholder value creation.”