Flight Centre to offer A$450m convertible notes, repurchase existing debt

Flight Centre Travel Group (FLT) has announced an offering of A$450 million in senior unsecured convertible notes due 2032. These new notes will be convertible into fully paid ordinary shares and are being marketed to eligible investors, with final terms to be set via a book-build process. FLT will seek to list the new notes on the Singapore Exchange Securities Trading Limited (SGX-ST).

The proceeds from the new notes will facilitate a concurrent repurchase of up to A$325 million of existing convertible notes, specifically up to A$125 million of 2027 notes and up to 100% of the A$199.6 million principal amount of 2028 notes. This initiative aims to extend Flight Centre’s debt maturity profile, support growth opportunities, and maintain low-cost fixed-rate funding.

The new notes feature an initial conversion price ranging from A$16.43 to A$17.03 per share, based on a reference share price of A$11.95, representing a 3.47% discount to the closing price of ordinary shares on 27 August 2025. The coupon rate for the new offering is between 2.000% and 2.500% per annum.