Nigerian Eagle Still Seeking Funds
Nigerian Eagle Airlines (formerly Virgin Nigeria Airways) is planning to raise at least $185 million over the next six months. A private placement memorandum has been issued through Nigerian bank UBA Capital. Consultancy Ernst & Young has meanwhile been brought in to seek out potential equity partners. A potential private buyer would want a controlling stake of 51% or more, comprising Virgin Atlantic’s 49% and some of the shares held by Nigerian institutional investors.
Around $50 million would be used to pay back part of a $100 million convertible bond held by UBA. The remainder would be used for capital projects. The airline is looking to convert the order to a lease arrangement, and if unsuccessful may tap rock-bottom prices to grow its Boeing 737-300 fleet.
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