Qantas repays debt ahead of schedule

Victoria
By Victoria November 15, 2012 22:42

Qantas repays debt ahead of schedule

Qantas has announced that it will repay $650 million in debt ahead of schedule and invest up to $100 million in an on-market share buy-back of up to around 4% of Qantas shares on issue1. The buy-back will begin in December 2012.
Qantas Chairman Leigh Clifford said: “The Board believes the current Qantas share price does not reflect fair value of the Group, particularly considering the underlying strength of its domestic, loyalty and Jetstar businesses and the proposed partnership with Emirates.
“Our continued progress towards the turnaround strategy for Qantas International, plus cash inflows from recent transactions, gives the Board confidence to approve these capital management measures.
“The share buy-back and accelerated debt reduction reflect the Board’s goal of returning value to shareholders and maintaining a strong balance sheet, as well as retaining the flexibility to pursue current growth initiatives,” he added.
The accelerated debt reduction involves repayment of all outstanding 5.125 per cent notes originally due in June 2013. This repayment will be completed five months ahead of schedule in January 2013 and will form part of a program of $1 billion in debt reduction for the Qantas Group in FY13.

Victoria
By Victoria November 15, 2012 22:42
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