Air New Zealand: Major Shareholders Support Virgin Australia

Air New Zealand advises that it has agreed to support Virgin Australia Holdings Limited (Virgin Australia or Company) by contributing to new unsecured term loan facilities. Air New Zealand (NZX: AIR), Etihad Airways and Singapore Airlines (SGX: SIA) will each separately provide funding, as part of a program to further supplement and diversify Virgin’s liquidity position.

The facilities are for an aggregate amount of AUD90 million with pro rata contributions from each shareholder based on their current relevant interest. The facilities are for a term of one year and based on arms-length commercial terms.

The commitments are subject to certain conditions precedent that are customary for transactions of this nature including the preparation and execution of the final transaction documentation by all parties, which is expected to occur within the next four weeks.