Korean Air Lines Co. plans to sell new shares to raise about 1 trillion won ($817 million) after the coronavirus outbreak wiped out 90% of its flights.
The Seoul-based carrier aims to sell about 79.4 million new shares to existing holders in July, it said in a regulatory filing Wednesday. The price is initially estimated at 12,600 won a share, with the final level to be determined on July 6. Korean Air, which has slumped 36% this year, closed at 18,200 won.
Korean Air also said it will get 1.2 trillion won in loans from Korea Development Bank and Export-Import Bank of Korea. The state-run lenders last month agreed to provide the funds on condition that Korean Air sold new shares.
Korean Air employees have taken pay cuts of as much as 50%, while more than two-thirds have gone on leave for six months as part of the company’s efforts to lower costs. The airline is also selling non-core assets to raise funds.