Air Berlin offers to buy back €125 million 9% convertible bonds

By Susanna Moon

Chicago, Nov. 1 - Air Berlin plc announced an offer to repurchase Air Berlin Finance BV's €125 million 9% convertible bonds due 2014 between Nov. 2 and Nov. 11.

The minimum offer price will be par for each €50,000 principal amount plus accrued interest. The company will spend no more than €125 million plus accrued interest.

Air Berlin Finance may redeem the remaining bonds at par if the total amount of the bonds then outstanding is less than 20% of the amount issued.

Morgan Stanley Bank AG is the dealer manager and tender agent.

Air Berlin also plans to place up to €150 million of new 8.5% bonds due Nov. 10, 2015 at par, which may be increased by up to €50 million. The subscription period runs from Nov. 2 through Nov. 5, and the issue date is expected to be Nov. 10.

Proceeds will be used for refinancing, including purchasing the 9% convertibles, and general corporate purposes.

The company is a Berlin-based airline.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.