Qantas just issued $300m of bonds at 7.75%. Virgin announce sale and lease back of HQ.
7.75% is an excellent return for investors but also shows the risk premium that QF must now pay since its downgrade. VA would also have to pay similar rates...no wonder it went to its shareholders instead.
The sale and leaseback of the head office makes sense. There is not a lot of point in an airline having its capital tied up in a building. Most ASX200 companies do not own their head offices for the same reason; it is not their core business.