Cathay Pacific Tests Market for 1st U.S. Dollar Bond in 25Y

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HONG KONG, May 6 Reuters Hong Kongs Cathay Pacific Airways Ltd is considering issuing its first U.S. dollar bond in nearly 25 years, according to a term sheet seen by Reuters.

The COVID19 pandemicravaged airline will begin speaking to investors on Thursday to determine if a deal goes ahead for a U.S. dollar Reg S bond, which means the debt cannot be sold to U.S.based investors.

The size of the issue is yet to be determined and will be set based on the demand for the bonds, according to a person familiar with the matter.

A final decision would be made on the issuance subject to market conditions, according to the term sheet.

We continue to explore capitalfinancing opportunities if suitable market conditions arise, Cathay said in an emailed statement to Reuters.

The airline contemplated a U.S. dollar debt deal in 2019 which would have been its first since 1996 at the peak of the prodemocracy protests in Hong Kong but put it on hold because of the price demanded by investors.

Cathay shares fell 2.6 in Hong Kong trading on Thursday morning to HK6.50, compared to the recent peak of HK7.89 on March 18. The broader Hong Kong stock market was flat.

The carrier has traditionally issued nearly all of its debt in Hong Kong dollars.

In January it issued HK6.74 billion 869.51 million of convertible bonds in Hong Kong dollars to shore up liquidity which prompted its shares to record their worst daily decline in more than 12 years..

Cathay said in March it was focused on…

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