Air Europa hires PJT Partners to increase capital, raise debt, El Confidencial says

MADRID (Reuters) – Spanish airline Air Europa has hired adviser PJT Partners (NYSE:) to raise about 475 million euros ($492 million) in equity and debt, Spanish news website El Confidencial reported on Tuesday, citing unidentified industry sources.

Air Europa’s management is seeking to raise 240 million euros ($248.6 million) in fresh equity and to raise 235 million euros in debt to pay back an outstanding loan granted by the government during the pandemic, the news website said.

The airline, which is 20%-owned by British Airways owner IAG Group, could raise the equity through the sale of new shares equivalent to up to a 20% stake, it added.

Air Europa and PJT Partners did not immediately respond to requests seeking comment.

($1 = 0.9654 euros)