Editorial Comment

Virgin Australia closes first unsecured bond

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Virgin Australia closes first unsecured bond

Yesterday Virgin Australia closed its first unsecured bond. The airline launched a $300 million offering of five-year (non-call life) senior notes with price talk around 8.5%.
Goldman Sachs is the sole lead bookrunner. The high-yield bonds have been rated B-/B3 by S&P and Moody’s. Proceeds will be used to build up US dollar liquidity to meet future financing obligations.

Sources stated that the paper sold well with both US and non-US investors.

Brent crude oil fell 1.58% to $80.38 a barrel yesterday.