Travel Agents

Flight Centre settles $400m convertible note offering

As expected, Flight Centre Travel Group (FCTG) has confirmed that its offering of senior unsecured convertible notes worth $400 million has been settled.

The net proceeds from the offering are expected to be approximately A$392 million, after deduction of commissions, professional fees and other administrative expenses.

FCTG intends to use the net proceeds from the offering to repay $100 million of the company’s existing debt, with the remaining proceeds applied to further strengthen its liquidity position.

In announcing the offering of notes last week, FCTG supremo Graham “Skroo” Turner said it would “substantially enhance our funding position with longer tenor, extended covenant relief and greater liquidity”.

“While trading conditions continue to improve, we continue to reduce our cost base and we remain prepared for almost all scenarios including a prolonged downturn,” he said.

“We are seeing gradual improvement in revenue trends, albeit from a modest level and, importantly, we continue to win key customers in our corporate business notwithstanding the difficult conditions.

“The recent easing of lockdown restrictions in Australia, our largest market, gives us confidence of further improvement in the near term.

“While we remain cautious given the environment in the Northern Hemisphere, we welcome the recent news of Pfizer’s positive COVID-19 vaccination trial data and look forward to further developments, given their potential to fast-track the recovery in travel activity.”

FCTG will no doubt gain further confidence from Moderna’s coronavirus vaccine progress, the US drug company recently releasing data that showed it is 94.5 per cent effective.

Earlier this month, Turner spoke candidly about the tough business decisions that FCTG has been forced to make during the pandemic at Travel DAZE 2020, including redundancies, retail store closures, the sale of the company’s Melbourne office and the closure of multiple brands.

Turner also outlined the company’s recovery timeline to attendees of the virtual event, as well as tackling questions about FCTG’s handling of refunds, international travel, the future of agents, and lessons he’s learned during the pandemic.

You can watch his Travel DAZE session in full, on demand below:

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Travel Agents

Flight Centre showcases agents’ expertise (and unveils new captains) in first-ever global brand campaign

A new captain and co-captains, a fresh tagline, a new microsite and a TikTok account – Skroo and his team sure didn’t muck around with Flight Centre’s first global campaign.

Share

CommentComments

Tourism

Experience Co expands portfolio with two big acquisitions

After getting its house in order and navigating its way through COVID, the ASX-listed company has made a couple of very big plays.

Share

CommentComments

Cruise

Royal Caribbean names new sales boss for Australia and NZ

After pulling a Michael Jordan and coming out of retirement, the much-loved and well-respected Peter McCormack is once again hanging up his boots at Royal Caribbean.

Share

CommentComments

Aviation

Air Canada introduces new refund policy for COVID-affected flights

And, in good news for agents, you can hold on to your loonies, with the Canadian carrier confirming it won’t recall any sales commissions on refunded tickets that it processes.

Share

CommentComments

Wholesalers

AAT Kings to relaunch #EmptyEsky series with new trips

Travel Weekly’s esky is usually full of beers. However, we’d happily drink them all to be ready for these new trips.

Share

CommentComments

Events

“So disappointing”: Bali-themed festival forced to apologise, issue refunds and offer free entry

Organisers of a festival aiming to quench the thirst of Aussies who would rather be in Bali right now appear to have missed the mark by quite a bit.

Share

CommentComments

Tourism

ScoMo “in no hurry” to reopen Australia’s international borders

It appears the likelihood of more travel bubbles being announced soon is about the same as ScoMo’s beloved Sharkies winning the NRL Premiership this year … not good.

Share

CommentComments

Destinations

YIPPEE! Two-way trans-Tasman bubble finally kicks off

Today is the day, folks! As of midnight last night, the two-way trans-Tasman bubble is FINALLY open! Get the lowdown on NZ flights and tour discounts right here.

Share

CommentComments

Technology

“Do not trust the GPS”: Google Maps places rural town 85km north of its actual location

According to the mayors of a handful of rural Aussie towns, this isn’t the first time the popular travel app has caused problems for them.

Share

CommentComments

Travel Agents

“We call it the triple win”: Global Work & Travel launches new affiliate program

Have you been searching for ways to earn some much-needed moolah ever since JobKeeper ended? Here’s one that doesn’t involve busking on the street or spinning signs.

Share

CommentComments

Cruise

CLIA to welcome 18 new ships with virtual showcase

The association is bringing you all the latest vessel news from the maritime world with this exclusive showcase.

Share

CommentComments

Hotels

GM appointed to lead Best Western’s newest Aussie hotel

Australia’s newest luxe boutique hotel has named its GM who, according to the accompanying press photo, has a strong beard game.

Share

CommentComments