Jet Airways gains 3% on report of securing fresh credit from PNB

As per the report, the loan has been raised in two lots through separate agreements with the bank

Mar 11, 2019 12:03 IST India Infoline News Service

Jet-Airways2
Shares of Jet Airways were trading up 3% on Monday after a Mint report stated that the debt ridden airline company is all set to receive loan of Rs2,050cr from Punjab National Bank (PNB).

As per the report, the loan has been raised in two lots through separate agreements with the bank. Under one agreement, Jet Airways received a credit facility of Rs1,050cr, including a term loan in dollar worth Rs350cr (at a notional rate of Rs67/$) and a non-fund based facility of Rs700cr. The second agreement, a credit facility of Rs1,000cr, includes a term loan of Rs750cr and a non-fund based facility of Rs250cr.

Further, both the term loans have a five-year repayment tenure, although their interest rates vary. The Rs750cr loan has been sanctioned at a rate of 12-month Libor plus 5%, with a yearly reset. The rate for the Rs300cr term loan is 6-month Libor plus 3.5%, with a half-yearly reset. The loan agreement was signed on 14 January, the Mint report said. Jet Airways has an option to sell down as much as Rs250cr of the term loan to other investors, the report added.

Jet Airways will use the credit facility for its working capital needs, the media report said.

Jet Airways (India) Ltd's share price is currently at Rs250.50, up by Rs7.4 or 3.04%, from its previous close of Rs243.10 on the BSE.
The scrip opened at Rs251.15 and has touched a high and low of Rs254.50 and Rs248.30, respectively. So far, 54,39,585 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs2,761.62cr.

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