Commodities

Virgin Australia to issue $425 mln unsecured notes to fund Velocity acquisition

Credit: REUTERS/DAVID GRAY

Virgin Australia Holdings Ltd on Friday priced a $425 million issue of unsecured notes, the proceeds of which will partly fund the proposed acquisition of 35% of its Velocity frequent flyer programme that it does not already own.

Oct 25 (Reuters) - Virgin Australia Holdings Ltd VAH.AX on Friday priced a $425 million issue of unsecured notes, the proceeds of which will partly fund the proposed acquisition of 35% of its Velocity frequent flyer programme that it does not already own.

Virgin had last month said it entered an agreement to buy back the Velocity stake for A$700 million ($477.26 million) from private-equity group Affinity Equity Partners.

The company has also obtained approval from the Foreign Investment Review Board for the Velocity acquisition.

($1 = 1.4667 Australian dollars)

(Reporting by Devika Syamnath in Bengaluru Editing by Chris Reese)

((Devika.Syamnath@thomsonreuters.com; +91 80 6749 1130;))

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