(Add Cathay’s comment to fifth paragraph)
HONG KONG, May 6 (Reuters) – Hong Kong’s Cathay Pacific Airways Ltd plans to issue its first US dollar bond in nearly 25 years, according to a term sheet seen by Reuters.
The airline ravaged by the COVID-19 pandemic will begin speaking to investors on Thursday to determine if a deal is reached for a Reg S bond in US dollars, which means the debt cannot be sold to US-based investors. United.
The size of the show has yet to be determined and will be set based on demand for bonds, according to a person familiar with the matter.
A final decision would be made on the issue “subject to market conditions”, according to the term sheet.
“We continue to explore equity financing opportunities if appropriate market conditions arise,” Cathay said in an emailed statement to Reuters.
The airline considered a 2019 US dollar debt deal – reportedly its first since 1996 – at the height of pro-democracy protests in Hong Kong, but suspended it due to the price investors demanded .
Cathay’s shares fell 2.6% in Hong Kong on Thursday morning to HK $ 6.50, from the recent high of HK $ 7.89 on March 18. The Hong Kong stock market has been flat.
The carrier has traditionally issued almost all of its debt in Hong Kong dollars.
In January, it issued 6.74 billion Hong Kong dollars ($ 869.51 million) of convertible Hong Kong dollar bonds to bolster its liquidity, prompting its stocks to post their worst daily decline in over 12 years old.
Cathay said in March he was focusing on preserving cash flow after recording a record HK $ 21.65 billion annual loss caused by slower travel, restructuring costs and fleet write-downs. .
Its passenger numbers fell 98.7% from a year earlier, although freight transport was down 32.3%.
Reporting by Scott Murdoch in Hong Kong; Editing by Muralikumar Anantharaman