According to people familiar with the matter, Virgin Australia Airlines Pty Ltd. taking on new debt to hand cash to owner Bain Capital just months before the airline’s expected IPO.
The country’s second-largest airline has asked investment banks to outline a possible so-called dividend recapitalization during interviews with potential advisors for the listing, the people said, asking not to be identified as the talks are still confidential. The move would result in Virgin issuing debt ahead of its potential IPO and using the proceeds to pay dividends to Bain, they said.
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