By Rebecca Melvin
New York, Feb. 27 - Air Berlin Finance BV, a subsidiary of Air Berlin plc, priced an upsized €140 million of six-year convertible bonds at par of €100,000 to yield 6%, with an initial conversion premium of 25% of the volume weighted average price of shares during bookbuilding, according to a company news release.
Initially the deal was talked at €120 million in size.
Major shareholder Abu Dhabi carrier Etihad Airways PJSC planned to subscribe for 29.2% of the Regulation S bond offering.
Credit Suisse Securities (Europe) Ltd. was lead manager and bookrunner of the offering.
The bonds are initially convertible at a share price of €2.82.
The bonds are non-callable for two years and then are provisionally callable for two years if shares exceed 200% of the conversion price. After four years, the bonds are callable if the price exceeds 150% of conversion. Holders can put the bonds at year four.
Air Berlin plans to use the proceeds to boost working capital and for general corporate purposes.
The bonds are expected to be listed on 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: | Convertible bonds
|
| Amount: | €140 million, upsized from €120 million
|
| Maturity: | 2019
|
| Bookrunner: | Credit Suisse Securities (Europe) Ltd.
|
| Co-managers: | Commerzbank AG and quirin Bank
|
| Coupon: | 6%
|
| Price: | Par, €100,000
|
| Yield: | 6%
|
| Conversion premium: | 25%
|
| Conversion price: | €2.82
|
| Calls: | Non-callable for two years, then provisionally callable for two years at 200% price hurdle and then callable if shares exceed 150% of conversion
|
| Puts: | At year four
|
| Pricing date: | Feb. 27
|
| Settlement date: | March 6
|
| Distribution: | Regulation S
|
| Stock listing: | Xetra: AB1
|
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