Following the announcement of its planned rights issue and aborted takeover attempt from a low-cost rival, easyJet has published the prospectus for its planned issuance that offers qualifying shareholders 47 new shares at 410p for every 31 shares held. easyJet hopes to raise £1.2bn from the sale of 301,260,394 new shares.
BNP Paribas and Credit Suisse are joint global coordinators, joint bookrunners, joint underwriters and joint corporate brokers. Goldman Sachs is joint global coordinator, joint bookrunner and joint global coordinator. Banco Santander and Société Générale are joint bookrunners and joint underwriters
BNP Paribas, London Branch, is joint sponsor with financial advisor Greenhill.
There have been questions surrounding the likelihood of easyJet’s majority shareholders to participate in the rights issue, specifically asks Mark Simpson, Airline Analyst at Goodbody, if Sir Stelios Haji-Ioannou will participate in the rights issue or “risk seeing his interest diluted down below 15% [and] if he does/or doesn’t participate, could his stake cornerstone a more aggressive bid for easyJet”. Simpson remarks that the rights issue has now resolved all of easyJet’s balance sheet concerns and “that the business remains significantly undervalued”.