Tiger Air

Tiger Air: Grp has announced plans to raise $297m through a rights issue and a preferential convertible securities to fund future expansion in Asia and strengthen its balance sheet. Funds will be used to repay exisiting loan, invest in new or exisiting airlines and working capital. Grp note that it has nearly doubled its capacity in the past four yrs, and is now flying about 6.5mpassengers annually. Add that proceeds from the fund raising exercise will allow grp to fortify its balance sheet and well-position the grp to grow the Tiger franchise in Asia. Shareholders are entitled to subscribe for 1 rights share for every 5 existing shares, at an exercise price of $0.47 / share, representing a discount of about 34% to the last traded price of $0.715 per share on 4 March 2013. The preferential offering will entitle shareholders to subscribe for one convertible security with a denomination of $1.07 for every 4 shares that they hold. Each convertible security confers a right to receive distributions at the rate of 2% p.a for the first five yrs and can be converted at the prevailing conversion price. The conversion price will be determined by the Co after trading closes on the price fixing date, subject to a minimum conversion of $0.65/share and a maximum of $0.90 / share.