May 4, 2020 / 11:01 PM / in 23 days

BRIEF-Qantas Airways Says Secured A Further $550 Million In Debt Funding

May 5 (Reuters) - Qantas Airways Ltd:

* SECURED A FURTHER $550 MILLION IN DEBT FUNDING.

* HAS NO FINANCIAL COVENANTS ON ANY EXISTING OR NEW DEBT FACILITIES AND NO SIGNIFICANT DEBT MATURITIES UNTIL JUNE 2021.

* EXPECTS TO REACH A NET CASH BURN RATE OF $40 MILLION PER WEEK BY END OF JUNE 2020

* HAS ALSO EXTENDED FLIGHT CANCELLATIONS FROM END-MAY THROUGH TO END OF JULY, WHICH WERE STILL AT PRE- CORONAVIRUS LEVELS

* AFTER FURTHER FUNDING, NET DEBT IS NOW WITHIN MIDDLE OF TARGET RANGE, AT $5.8 BILLION

* CURRENTLY HAS $2.7 BILLION IN UNENCUMBERED AIRCRAFT ASSETS AND CAN RAISE FUNDS AGAINST THESE IF REQUIRED

* SINCE MARCH, ELEVATED LEVELS OF ANNUAL LEAVE PAYMENTS FROM STANDING DOWN MORE THAN 25,000 EMPLOYEES AHEAD OF JOBKEEPER PROGRAM

* QANTAS & JETSTAR TO EXTEND EXISTING DOMESTIC & TRANS-TASMAN FLIGHT CANCELLATIONS BEYOND END-MAY THROUGH TO END OF JUNE 2020

* CURRENT STAND DOWN OF EMPLOYEES WILL NOW BE EXTENDED UNTIL AT LEAST END OF JUNE

* INTERNATIONAL FLIGHT CANCELLATIONS WILL BE EXTENDED THROUGH TO END-JULY 2020

* QANTAS, JETSTAR CUSTOMERS WITH BOOKINGS IMPACTED BY CANCELLATIONS FOR JUNE AND JULY WILL BE CONTACTED DIRECTLY, OFFERED ALTERNATIVES

* GROUP CURRENTLY OPERATING 5% OF PRE-CRISIS DOMESTIC PASSENGER NETWORK & 1% OF INTERNATIONAL NETWORK ON AN AVAILABLE SEAT KILOMETRE BASIS

* GROUP’S REMAINING BRENT CRUDE OIL HEDGING TO SEPT 2020 IS IN OUTRIGHT OPTIONS WITH NO RISK OF FURTHER HEDGE LOSSES

* “FLEET, NETWORK AND CAPITAL EXPENDITURE WILL ALL HAVE TO BE REVIEWED”

* “EXPECTING DEMAND RECOVERY TO BE GRADUAL AND IT WILL BE SOME TIME BEFORE TOTAL DEMAND REACHES PRE- CRISIS LEVELS”

* AS AT TODAY, CASH IMPACT OF ALL FOREIGN EXCHANGE & FUEL HEDGING BETWEEN NOW & END OF SEPT 2020 IS A A$145 MILLION CASH OUTFLOW

* GROUP SECURED A FURTHER $550 MILLION IN FUNDING AGAINST THREE OF ITS WHOLLY-OWNED BOEING 787-9 AIRCRAFT

* SUFFICIENT LIQUIDITY TO RESPOND TO RANGE OF RECOVERY SCENARIOS, INCLUDING ONE WHERE CURRENT TRADING CONDITIONS PERSIST UNTIL AT LEAST DEC 2021

* CURRENTLY HAS $2.7 BILLION IN UNENCUMBERED AIRCRAFT ASSETS AND CAN RAISE FUNDS AGAINST THESE IF REQUIRED Source text reut.rs/2L2dsS6 Further company coverage:

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