Regional Express in advanced negotiations with PAG regarding domestic jet operations

22 September, 2020

Regional Express (Rex) signed (22-Sep-2020) a long form term sheet and is in advanced exclusive negotiations with PAG Asia Capital (PAG), regarding an investment by PAG of up to AUD150 million (USD108.4 million) to be used exclusively to support the launch of Rex's domestic major city jet operations scheduled to commence on 01-Mar-2021. The funding is proposed to comprise first ranking senior secured convertible notes. It is proposed an initial funding tranche of AUD50 million (USD36.1 million) will be drawn on completion of the transaction, targeted for the end of Dec-2020, with the balance of the funding drawn over three years. The notes will be convertible at AUD1.50 (USD1.08) per share, subject to certain adjustments. Based on Rex's current issued share capital, if the AUD50 million (USD36.1 million) tranche is fully converted into shares, PAG would hold approximately 23% of Rex's total issued shares and if the full AUD150 million is drawn down and fully converted, PAG would hold approximately 48% of Rex's issued shares. Upon completion, PAG will be entitled to nominate two directors to the Rex board. [more - original PR]