PPRuNe Forums - View Single Post - REX to transition to ATRs, start domestic jet ops
Old 26th Feb 2022, 23:54
  #1805 (permalink)  
MickG0105
 
Join Date: May 2016
Location: Sunshine Coast
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Originally Posted by 43Inches
... It owes PAG $70mil out of a total of $150mil, however that is convertible notes, so PAG can be given/take Rex shares at discount instead of debt, ...
Rex has currently drawn down $75 million, not $70 million. And PAG can't be given shares at a discount. The convertible notes issue to PAG is clear on a number of things. PAG determine the form of settlement - shares or cash - not Rex. And if PAG elect to take shares the issue price is $1.50 - if the shares are trading below that then Rex has to cover the difference. PAG are not going to be diddled by Rex on that deal.

Originally Posted by 43Inches
... At present the QF sale act restricts it from selling anymore shares to an overseas investor so that avenue is blocked.
The Sale Act does not block another shares placement so long as subsequent to the placement foreign ownership doesn't exceed the threshold 49 percent articulated in Part 3 of the Act. Qantas could easily launch another $1.5 billion equity raising through institutional placements and manage the foreign component.



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