Fastjet lands £15.68mln funding with US investor

Africa focussed budget airline Fastjet (LON:FJET) today revealed plans to raise £15.68mln with the issue of convertible securities to a new investor.

An American investment fund, run by Bergen Asset Management, is subscribing for the zero coupon convertibles which will be issued in six separate tranches with the first being £2.55mln.

The next investment after that will be £2.625mln. It is due 60 days after the initial tranche and subsequent investments will come every 60 days thereafter.

The securities will convert into new Fastjet shares, at prices derived from the stock’s prevailing share price.

“This agreement with Bergen gives us access to very significant funding over the next year on a flexible basis and will provide us with a solid platform on which to grow the business and expand our operations in Africa,” said chief executive Ed Winter.

“The investment structure potentially reduces the dilution to existing shareholders and gives us the opportunity to restructure parts of the business and adapt our business model in the light of our experience so far in Africa.

“Securing this funding will assist us in our core objective of making Fastjet the first pan-African low-cost airline and meeting the growing demand for air travel across the continent.”