Flybe raises 150m pounds to strengthen balance sheet

20th Feb 2014 15:22

Regional low-cost carrier Flybe said it would raise 150m pounds via a two-for-three share offer at 110p a share as it seeks to strengthen its balance sheet and cut fleet ownership costs. The offer price is a 7.2% discount to the closing mid-market price of 118.5p on February 19th, the day before the announcement, the company said. Chief Executive Saad Hammad said Flybe, which went public in 2010, wanted to deploy capital to own aircraft with secured loans rather than full operating leases.He added that Flybe wanted to "improve productivity by investing in improvements to the group's IT and finance functions, resulting in greater robustness in infrastructure, cost savings and improved operating efficiencies within 6 to 12 months".Flybe also wants to develop new routes and bases within a one- to two-year timeframe and expand operations as a "white label" carrier operating routes on behalf of other airlines, Hammad said.Flybe shares were up 0.5p to 119p at 15:21.FP