REX to transition to ATRs, start domestic jet ops
From memory the basics are:
- a total of $150 million in funding available for drawdown at Rex's discretion within a three year period.
- funding to be used by Rex to "establish, launch, operate and expand Rex's Australian domestic Regular Public Transport jet operations". Interestingly, the document specifies the operating aircraft right down to type and configuration.
- drawdown is by way of Rex issuing convertible notes/warrants with a face value of $1, and a conversion/strike price of $1.50.
- conversion of the notes/warrants to shares at PAG's sole discretion.
- there were some conditions precedent relating to early conversion but those having passed, maturity (when PAG can convert) is five years from the first draw down, extendible by up to one year. PAG also have the option of electing to convert any time from the end of the three year draw down period.
- 4 percent interest on the notes subsequent to drawdown (interest not payable during the extension period if PAG elects to extend).
- if PAG elect not to convert to shares, Rex has to pay the drawn down amount back.
- PAG get two board seats.
Bottomline, PAG are tied to Rex for a minimum of another two, and maximum of another three, years from 15 March this year.
I cannot imagine that things are evolving as predicted/hoped for by either party when they entered into the deal. Thus far, it has been a better deal for Rex than PAG, in that 4 percent interest on that sort of sum for a business of Rex's financial stature is below market rates.
Another ERJ 190 added to NJE fleet
How long until some of these birds do some flying for REX jet
They are a perfect size for new routes into north QLD or extra frequency to OOL
But where they could get the best bang for their buck would be trans con
How long until some of these birds do some flying for REX jet
They are a perfect size for new routes into north QLD or extra frequency to OOL
But where they could get the best bang for their buck would be trans con
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The only way NJE 190’s will be in QLD will be for FIFO ops at this stage.
NJE can bleed more money with the latest fleet addition, while RQG headed to the desert, meanwhile what’s the SAAB replacement plan??? Options are quickly disapearring!
And Rex announced today that Neville Howell's last day was last Friday. Odd way to send a bloke off who has been with the show since the get-go.
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Yes but he is still COO. It is not as if he has departed the company.
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Yes but he is still COO. It is not as if he has departed the company.
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It is straight out of the "circling the drain" script?
Move people around, sack people, change positions. All to somehow change the reality of the numbers.
Sometime soon the fuel supplier or similar will put them on a cash only basis.
Move people around, sack people, change positions. All to somehow change the reality of the numbers.
Sometime soon the fuel supplier or similar will put them on a cash only basis.
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Ol' Kimmy is feeling the heat.
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