Air France talks €500 million seven-year Oceanes to yield 0.125%-0.5%, up 57.5%-65%

By Abigail W. Adams

Portland, Me., March 20 – Air France-KLM plans to price up to €500 million of seven-year convertibles in the Oceane structure after the market close on Wednesday with price talk for a coupon of 0.125% to 0.5% and an initial conversion premium of 57.5% to 65%, according to a company press release.

HSBC, Natixis and Societe Generale are joint bookrunners for the private placement offering made in compliance with the French monetary and financial code.

The bonds are callable starting on April 15, 2022 subject to a 130% hurdle. The bonds are putable on March 25, 2024 and upon a change of control.

Proceeds will be used for general corporate purposes, which may include refinancing the company’s subordinated perpetual notes callable in October 2020.

Air France-KLM is a Roissy, France-based airline holding company.

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