Clifford Chance advises investors on Cebu Pacific’s private placement of US$250 million convertible bonds

Leading international law firm Clifford Chance has advised International Finance Corporation, IFC Emerging Asia Fund, LP and Indigo Philippines LLC, an affiliate of private equity firm Indigo Partners LLC, on the private placement of US$250 million convertible bonds due 2027 by low-cost carrier Cebu Air, Inc. (Cebu Pacific) listed on the Philippines Stock Exchange. The bonds are convertible into common shares of Cebu Pacific. The shares issued as a result of the conversion of the convertible bonds will be listed on the Philippines Stock Exchange.

The private placement was part of a broader business transformation exercise that was launched by Cebu Pacific in response to the Covid-19 pandemic. The proceeds will be used to fund working capital requirements, repayment of debt and lease obligations, and critical capital expenditures of Cebu Pacific and its subsidiaries.

The project involved a cross-border team of Clifford Chance experts in international corporate, debt and capital markets transactions, led by partners Johannes Juette (Singapore), Virginia Lee (Hong Kong) and Gareth Deiner (Singapore), senior associates Claire Neo (Singapore) and Ryan Wong (Hong Kong) and associate Anson Wong (Hong Kong), with specialist advice provided by partner Fergus Evans (Singapore) and senior associate Nattawat Vilasdechanon (Singapore) for their expertise in aircraft financing.

Speaking on the transaction Johannes said, “We are pleased to have been involved in this strategic capital markets transaction. We continue to see strong interest in convertible bonds, as they are attractive to businesses when volatility rises and owners are looking to mitigate risks amid challenging market conditions.”