WestJet Airlines to raise $150 million in share issue to finance capex

THE CANADIAN PRESS

CALGARY - WestJet Airlines Ltd. (TSX:WJA) said Wednesday it has signed a deal with a syndicate of underwriters to raise at least $150 million in an issue of shares to help fund capital expenditures, including the purchase of new aircraft.

The company said it will issue 13.4 million common and variable voting shares at $11.20 per share to raise $150 million.

WestJet shares were down 30 cents at $11.70 on the Toronto Stock Exchange before trading was halted pending the announcement.

The underwriters, led by CIBC, have also been grained an over-allotment option for an additional two million shares that if fully exercised would bring the financing to $172.5 million.

Last month, WestJet revised its aircraft delivery schedule to slow the addition of new aircraft to its fleet.

The company had earlier planned to increase its fleet to 121 aircraft by 2013, instead the airline said in August it expects to have between 108 and 111 in 2013.