By Rebecca Melvin
New York, Aug. 20 - Air Berlin Finance BV priced €125 million of five-year convertible bonds at par to yield 9% with an initial conversion premium of 11%, according to a news release.
The Regulation S bonds will be guaranteed by Air Berlin plc and convertible into shares of that company.
Morgan Stanley Bank AG and quirin bank AG were joint bookrunners and lead managers of the bond issue.
The initial conversion price was set at €4.01.
Part of the proceeds will be use to repurchase €90 million of existing bonds, with the remainder earmarked to refinance future airplane purchases and improve liquidity.
Air Berlin intends to list the bonds in the open market of the Frankfurt Stock Exchange.
Air Berlin is a low-cost German airline based in Berlin.
| Issuer: | Air Berlin Finance BV
|
| Guarantor: | Air Berlin plc
|
| Issue: | Bonds convertible into Air Berlin plc shares
|
| Amount: | €125 million
|
| Maturity: | Aug. 24, 2014
|
| Bookrunners: | Morgan Stanley Bank AG and quirin bank AG
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Conversion premium: | 11%
|
| Conversion price: | €4.01
|
| Pricing date: | Aug. 20
|
| Settlement date: | Aug. 25
|
| Distribution: | Regulation S
|
| Stock listing: | Xetra: AB1.DE
|
| Bond listing: | Open market of the Frankfurt Stock Exchange
|
| Stock reference: | €3.60
|
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