AIR - Air NZ.

[Scrunch]

Correlates to ASX open. Pretty common phenomenon with dual listed companies

Has anyone else noticed that there are starting to be some really big volumes going through over on the ASX on the AIZ ticker?

Through to around March 2020 most of the volume went through on the NZX. Over the last couple of months the AIZ volume has really picked up. Since Easter there's been 11 days on the ASX where volumes have exceeded 5 million shares and based on the direct broking graphs the 3 highest daily volumes in May were all over on the ASX.

Today's another example of that, a very strong 10,410,013 volume here on the NZX but a whopping 15,686,729 traded over on the ASX!!!
Does that mean we will have more examples (like today) of sharp price shifts just leading up to 12pm as the ASX pre-market exists, then at mid-day as the ASX opens?

[Snow Leopard]

Has anyone else noticed that there are starting to be some really big volumes going through over on the ASX on the AIZ ticker?
....

....and the brokerage is much cheaper whilst trades really do happen the instant you press the Go button.

[bull....]

....and the brokerage is much cheaper whilst trades really do happen the instant you press the Go button.

hahhaaha so true

[Balance]

https://www.nzx.com/announcements/354494

Sure as eggs crack under stress, an AIA billion dollar capital raising on the way with Air NZ.

[bull....]

Air NZ calls in bankers, advisers to mull funding options

https://www.afr.com/street-talk/air-...0200610-p5512q

the surge in stock price is good timing for a stock raise

[sb9]

Air NZ calls in bankers, advisers to mull funding options

https://www.afr.com/street-talk/air-...0200610-p5512q

the surge in stock price is good timing for a stock raise

Kind of explains a bit re the recent trading pattern..

[kyanar]

Air NZ calls in bankers, advisers to mull funding options

https://www.afr.com/street-talk/air-...0200610-p5512q

the surge in stock price is good timing for a stock raise

Yeah, except the linked NZX announcement says that's not the case. Lying about market-sensitive information like that to the NZX would go down like a lead balloon.

[Balance]

Yeah, except the linked NZX announcement says that's not the case. Lying about market-sensitive information like that to the NZX would go down like a lead balloon.

Actually, the company has confirmed the AFR Street Talk article in not so many words.

https://www.nzx.com/announcements/354494

Sure as eggs crack under stress, an AIA billion dollar capital raising on the way with Air NZ.

[Balance]

https://www.nzherald.co.nz/business/...ectid=12338931

Paywall article

"According to the AFR's Street Talk column the airline has appointed KPMGs advisory team to consider options on deal size, structures and timing. It also said that investment banks UBS and Forsyth Bar were "sticking close to the company."

"One local fund manager told the Herald this morning that the question was not really if Air NZ would raise capital but when and how much."

Billion dollar capital raising on the way. Guess the government will have to decide whether it participates or get diluted.

[Rep]

Yeah, except the linked NZX announcement says that's not the case. Lying about market-sensitive information like that to the NZX would go down like a lead balloon.

And there's the $900m Elephant in the Room.
The majority shareholder holds 52% of the shares and could opt to block an equity raise.
That would result in AIR having to tap the relatively expensive tranches of the $900m loan (7% and at 9% interest) instead - which is provided by the majority shareholder.
Then it has the option of either making AIR do an equity raise to pay back the loan or converting the loan to equity.
So if AIR doesn't do what the majority shareholder wants then it has extraordinary leverage right now - even more than the 52% to call the tune here.


The facility will be provided in two tranches – a tranche of $600,000,000 with an effective interest rate initially expected to be between 7% and 8% per annum and a second tranche of $300,000,000 with an effective interest rate initially expected to be in the order of 9% per annum. The facility will be available for a period of 24 months. The effective interest rates on both tranches will step-up by 1% if the facility remains after 12 months.

Other terms of the agreement (which is in the form of a binding terms sheet to be converted into long form agreements), include: a prohibition on payment by Air New Zealand of any dividends or other distributions to shareholders (including the Government) while any amount is available to be drawn under the facility, the giving of security for the loan by Air New Zealand and certain of its subsidiaries over their assets (subject to certain exceptions), the Government having the ability to seek repayment through a capital raise by the airline after six months, or converting the loan to equity (subject to compliance with laws and any necessary regulatory and/or shareholder approvals), Air New Zealand giving various undertakings, representations and operational and informational and other undertakings, and typical events of default.