Rex has signed an agreement with PAG Regulus Holdings (PAG), a subsidiary of leading Asia-Pacific focused investment firm PAG that will see an investment by PAG of up to AU$150 million to be used exclusively to support the launch of Rex’s domestic jet operations scheduled to commence on March 1, 2021.
The funding comprises first ranking senior secured convertible notes. An initial funding tranche of AU$50 million will be drawn down towards early January 2021, with the balance of the funding available for drawdown over the following three years.
The funding is subject to customary conditions including Rex’s shareholder approval for the purposes of section 611 of the Corporations Act 2001 and the ASX Listing Rules, which is intended to be sought at Rex’s Annual General Meeting, as well as to the Foreign Investment Review Board and any other required regulatory approvals. Upon Completion, PAG will be entitled to nominate two directors to the Rex board.