Australia’s largest travel agent gets boost to liquidity as it navigates pandemic
Allen & Overy has helped Australia’s largest travel agent get a boost to its liquidity as it navigates the COVID-19 pandemic.
The global firm advised Flight Centre Travel Group with its additional $200m of bilateral facilities. The facilities were provided by existing lenders.
Loan proceeds will be used to ensure the company has the necessary liquidity amid the major disruption to the global travel industry caused by the crisis, the law firm said.
“Together with Flight Centre’s equity capital raising and its cost reduction and cash preservation measures, the additional facilities will enable Flight Centre to continue to trade through this period and deliver its travel services to corporate and leisure customers, both in Australia and in its global operations across 23 countries,” Allen & Overy said in a statement.
The Allen & Overy team was headed by Sydney partners James Abbott and Adam Stapledon. It also included senior associate Victoria Eriksson and lawyers Alexandra Ioppolo and Alissa Lucas.
Flight Centre recently conducted a capital raising worth approximately $700m. The transaction included an institutional placement worth about $282m and an accelerated pro-rata non-renounceable entitlement offer worth around $419m.
King & Wood Mallesons advised on that deal, which was also conducted to give Flight Centre a stronger footing amid the coronavirus pandemic.
In other transactions, Allen & Overy recently confirmed that it acted on the first multi-currency loan using both the Sterling Overnight Index Average and the Secured Overnight Financing Rate. The reference rates are emerging to replace LIBOR for sterling and US-dollar loans, respectively.
Allen & Overy also recently confirmed that Wim Dejonghe will continue as its global senior partner. The leader will be on his second term at the helm.