Flight Centre repurchases A$25.2 million of convertibles due 2027

By Mary-Katherine Stinson

Lexington, Ky., Oct. 10 – Flight Centre Travel Group Ltd. repurchased A$25.2 million of its A$400 million 2.5% convertible notes due 2027 (ISIN: XS2250347700) under the company’s new capital management policy, according to a notice.

The repurchased notes, which were purchased in open market transactions, will be canceled.

Going forward, Flight Centre said it will provide updates on the total amount of notes repurchased and the face value of convertible notes outstanding at the company’s annual general meeting, half and full year results.

“We have proactively entered into this transaction in light of the opportunity presented by prevailing market conditions and with a view to creating future value for our shareholders,” Flight Centre managing director Graham Turner said in the notice. “We will continue to assess capital and liability management options in relation to the notes, as well as the A$400 million 1.625% convertible notes due 2028 on an opportunistic basis in the future.”

The capital management policy was announced Aug. 30 and will use free cash flow for capital expenditures and, where appropriate, mergers and acquisitions and for a combination of dividend payments and strategic buybacks of the company’s issued capital or convertible notes.

Under this policy, 50-60% of the company’s net profit after tax will be allocated to dividends or repurchases from the 2024 fiscal year, subject to the business’ anticipated needs at the time.

As previously announced, the company also declared a fully franked A$0.18 per-share final dividend for the 2023 fiscal year. The dividend, which was Flight Centre’s first since before the pandemic, will be paid to eligible shareholders on Oct. 19.

Flight Centre is a Brisbane, Australia-based travel agency.

© 2015 Prospect News.
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