New Issue: Air France sells €450 million convertible at 2.75%, up 50.8%

Nashville, April 14 - Air France-KLM on Thursday sold €450 million of 15-year convertible bonds in the Oceanes structure at par to yield 2.75% with a 50.8% initial conversion premium via joint bookrunners BNP Paribas, JPMorgan and Societe Generale.

The Regulation S deal, which launched earlier Thursday as €350 million with room to upsize to €450 million, sold at the aggressive end of yield talk for a coupon of 2.75% to 3.25% and in the mid-range of premium guidance of 48% to 53%.

Paris-based Air France said proceeds will be used to finance its investment program, mainly in ground equipment and new planes.

Terms of the issue are:

Issuer:	Air France-KLM
Issue:	Convertible Oceane bonds
Lead managers:	BNP Paribas, JPMorgan and Societe Generale
Amount:	€450 million
Maturity:	April 1, 2020
Coupon:	2.75%
Price:	Par
Redemption price:	Par
Yield:	2.75%
Conversion premium:	50.8%
Conversion price:	€20.50
Conversion ratio:	48.78
Contingent conversion:	No
Contingent payment:	No
Call:	Non-callable for 5 years, then with 130% trigger
Price talk:	2.75%-3.25%, up 48%-53%
Pricing date:	April 14
Settlement date:	April 19
Distribution:	Regulation S

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