Virgin Australia seeks $450m loan ahead of public listing

Virgin Australia seeks $450m loan ahead of public listing

Virgin Australia is looking for a loan of $450 million to pay its owner Bain Capital before the airline advances with its planned public listing later this year.

Two sources with knowledge of the matter confirmed to Reuters that Virgin is in talks with banks including Goldman Sachs and UBS about the loan.

Bain, the US based investment firm, said in January that it was looking to relist Virgin, which it purchased for $3.5 billion in 2020 after the airline was placed in voluntary administration. The firm has hired Goldman, UBS and Barrenjoey last month to lead the potential initial public offering (IPO).

The airline wants to raise at least $1 billion, according to one of the sources, and wants to seek an equity valuation of at least $3b upon listing.

“Led by CEO Jayne Hrdlicka, the team at Virgin Australia are doing fantastic work and have delivered an impressive transformation since the very challenging phase of COVID and administration,” Bain Capital CEO Mike Murphy said in January.

Virgin Australia Group CEO Jayne Hrdlicka

“The business is in great shape. In the coming months we will consider how best to position Virgin Australia for continued growth and long-term prosperity.”

Prior to the onset of the COVID pandemic, Virgin reported seven consecutive annual losses. But the airline recorded a full year profit in this financial year under the guidance of Virgin’s chief executive officer, Jayne Hrdlicka, since November 2020.

Latest News

  • Tourism

Tourism Western Australia MD Carolyn Turnbull departs

Tourism Western Australia MD Carolyn Turnbull is departing the agency with effect from Friday May 10. Over the past three years, Turnbull played an instrumental role in driving growth, with one of the agency’s most significant achievements being the increase in visitor spend. Under her leadership, Tourism WA achieved a record breaking $17.7 billion in […]

  • Travel Agents

DriveAway launches Brit-Euro Blitz campaign

DriveAway has launched its Brit-Euro Blitz: Explore the UK, Europe & Ireland campaign, designed to inspire travellers to uncover the beauty and diversity of those destinations during May and June. The campaign arrives amidst a surge in popularity for destinations across the UK, Europe and Ireland, with year-to-date increases averaging around 30%. Notably, cities such […]

  • Road & Rail

Fly and Stay Free with the Great Southern

Great Southern’s Fly and Stay Free special offer will have travellers taking in the views along the east coast between Adelaide and Brisbane next summer. This bright orange locomotive chases the summer sun, sharing the incredible coastline with those who want to experience it by train. The journey reflects the best of Australia, from charming […]

  • Tourism

Sober travel and TikTok guide Australian Gen Z trips

Gen Z travellers prefer to limit alcohol when overseas and have an increased reliance on TikTok when planning a trip, according to a report by StudentUniverse, the world’s largest online travel retailer for young people. The State of Student & Youth Travel Report for 2024 delved into the latest travel sentiments amongst those aged 18-25 […]

  • Tour Operators
  • Tourism

TTC: Deals are driving up demand for September trips

The latest market research from TTC Tour Brands shows interest in international leisure travel remains high for 2024, with 77 per cent of Australians over 18 still planning trips this year. Notably, 28 per cent of those travellers are eyeing September for their journeys. Europe continues to be the most popular destination, with 68 per […]

  • Aviation

Qantas ‘working urgently’ to fix app data leak

Qantas is looking into customer reports that passengers have this morning been able to access other passengers’ personal information on the airlines app. X user Lachlan posted that he was able log into different accounts every time he opened the app. My @Qantas app logs me in to a different person each time I open […]

  • Hotels

Revamped Wailoaloa Beach hotel opens as Crowne Plaza Fiji Nadi Bay Resort & Spa

Crowne Plaza Fiji Nadi Bay Resort & Spa is open and ready for bookings after the first phase of a multi-million-dollar transformation. Part of IHG Hotels & Resorts’ premium collection, the transformation has seen the completion of 106 guestrooms showcasing contemporary interiors reflective of the premium Crowne Plaza brand and is a first for the […]

  • Luxury
  • News

Kamalaya Koh Samui clinches clutch of wellness awards

Kamalaya Wellness Sanctuary & Holistic Spa has so far clinched five prestigious awards in 2024, including being inducted into the ‘Hall of Fame’ at the World Spa & Wellness Awards in London. Founders of the Koh Samui sanctuary and spa John and Karina Stewart expressed their heartfelt gratitude for the awards. “We are profoundly honoured […]