CATHAY PAC AIR (00293) plans to repurchase secured convertible bonds due in 2026.

CATHAY PAC AIR (00293) announced that on November 14, 2024, the company's wholly-owned subsidiary Cathay Pacific Finance III Limited (issuer) and the company entered into a transaction agent agreement with the joint transaction agent. Under this agreement, the joint transaction agent has been appointed for repurchases to assist the issuer in collecting intentions from bondholders willing to sell all or part of their existing bonds to the issuer. As of the date of this announcement, the issuer has received commitments from bondholders through the joint transaction agent to sell a total principal amount of HK$6.078 billion of existing bonds, including converted and cancelled bonds, representing approximately 90.30% of the original issued bonds by principal amount. The issuer may at its discretion decide to continue accepting offers to purchase existing bonds at the repurchase price at any time after the date of this announcement and before the end of the VWAP period. As of the date of this announcement, the outstanding principal amount of bonds (i.e. existing bonds) is HK$6.732 billion, which can all be converted into 850 million shares. The announcement states that the repurchase and subsequent cancellation of repurchased bonds reflect the company's confidence in its long-term business prospects and can enhance returns for the company's shareholders.