By Paul A. Harris
Portland, Ore., Aug. 6 – Deutsche Lufthansa AG (Ba1/BBB-) placed €500 million of 5 1/8% subordinated hybrid notes with investors, according to a company statement released on Thursday.
Global Structuring advisers Credit Suisse and Deutsche Bank were joint bookrunners. BNP Paribas and HSBC were also joint bookrunners.
The notes are subordinated to other existing financial liabilities of Lufthansa, according to the release.
They receive 50% equity/credit treatment from Standard & Poor’s.
The Cologne, Germany-based airline plans to use the proceeds for general corporate purposes and to strengthen its credit profile.
The issue was almost four times oversubscribed and placed with a wide range of investors, predominately from Germany, the United Kingdom, France and Switzerland, the company stated in the news release.
| Issuer: | Deutsche Lufthansa AG
|
| Amount: | €500 million
|
| Final maturity: | Aug. 12, 2075
|
| Securities: | Subordinated hybrid notes
|
| Global structuring advisers: | Credit Suisse, Deutsche Bank
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| Joint bookrunners: | BNP Paribas, Credit Suisse, Deutsche Bank, HSBC
|
| Coupon: | 5 1/8%
|
| First call date: | Feb. 12, 2021
|
| Settlement date: | Aug. 12
|
| Issuer ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB-
|
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