Australia-based travel agency Flight Centre has been assisted by King & Wood Mallesons on a capital-raising effort worth A$700 million. During the time of COVID-19 crisis, while the travel industry worldwide is being hit heavily, the raise is considered as a response by the embattled travel retailer to such a difficult time.
The deal consists of an institutional placement worth approximately A$282 million and an accelerated pro-rata non-renounceable entitlement offer valued at around A$419 million.
Commenting on the transaction, KWM M&A partner Paul Schroder said: “The combination of these initiatives is expected to ensure Flight Centre can trade through an extended period of uncertainty and disruption, can continue to deliver high-quality travel services to customers and can capitalise on opportunities as market conditions improve.”
The KWM team was led by Paul Schroder and Tim Klineberg. They were supported by senior consultant John Humphrey, head of public M&A David Friedlander and special counsels Amanda Isouard and Gavin Rakoczy.