Virgin Australia Inquires loan Worth USD 296M Ahead of IPO

According to two sources with direct knowledge of the situation, Virgin Australia is looking for a loan of up to A$450 million ($296.4 million) to repay its private equity owner before the airline's re-listing later this year.

According to the sources, Australia's second largest airline is in talks with banks such as Goldman Sachs and UBS about the loan, though no decision has been made and the size of the debt has not been finalised.

Because the discussions were private, the sources did not want to be identified. Bain Capital and Goldman Sachs, the airline's owners, declined to comment. UBS did not respond immediately to a request for comment.

Bain said in January that it would consider relisting Virgin, which it purchased for A$3.5 billion ($2.45 billion) including liabilities in 2020 after it was placed in voluntary administration, Australia's equivalent of Chapter 11 bankruptcy.

Last month, it hired Goldman, UBS, and Barrenjoey as lead managers for a potential initial public offering (IPO).

Virgin is looking to raise at least A$1 billion, the two source said, which would make it the largest share sale in Australia since investment firm GQG Partners raised A$1.18 billion in October 2021.

According to the sources, the airline, which competes with Qantas Airways Ltd in the domestic market, is expected to seek an equity valuation of at least A$3 billion when it goes public.