MADRID/LONDON – Air Europa, the Spanish airline, has hired adviser PJT Partners (NYSE: PJT) to raise cash through debt, and possibly a capital increase, to pay back the debt owed to the government, a spokesperson for the airline said on Tuesday.
The airline, which is 20% owned by British Airways owner IAG Group, is seeking funds to pay an outstanding package of loans worth a total of 475 million euros ($491.8 million) granted by the government during the pandemic, the spokesperson said.
Air Europa would first raise money through a capital increase of potentially up to 20%, and then new debt to pay the government loans, according to a source with knowledge of the talks.
Spanish website El Confidencial, which was ahead with the news, said that 20% of Air Europa could be valued at 240 million euros.
Last November, the Spanish airline said several parties, including Air France-KLM, had expressed an interest in acquiring a 20% stake in the company.
The spokesperson said on Tuesday no decision had been made on whether the operation would include debt, equity, or both, nor their respective amounts.
PJT Partners did not immediately respond to requests seeking comment.
($1 = 0.9659 euros)
