Air Berlin to issue at least €150 million of euro, Swiss franc notes

By Angela McDaniels

Tacoma, Wash., April 28 - Air Berlin plc plans to issue at least €150 million equivalent of new notes to institutional investors, according to a company filing with the London Stock Exchange.

The company will offer euro-denominated fixed-rate notes and Swiss franc-denominated fixed-rate notes due 2019 or due 2021.

The coupons will be determined by way of a bookbuilding. The coupon will be 6% to 6¾% for the new euro notes and 5½% to 6¼% for the new Swiss franc notes. They will be announced by May 2.

Concurrently, the company will offer the new notes to holders of its existing €150 million 11½% fixed-rate notes due 2014 and €200 million 8½% fixed-rate notes due 2015 in an exchange offer set to end May 6. The notes issued in the exchange offer will mature 2019.

The company's stated plan is to issue at least €250 million principal amount, or the equivalent amount in Swiss francs, of new notes through the offering and the exchange offer.

The exchange offer and new notes are part of a larger recapitalization that includes the issuance of €300 million of 8% subordinated convertibles by Air Berlin Finance BV to Etihad Airways PJSC and the extension of Air Berlin's partially undrawn credit facility with its largest shareholder to 2021 from 2016.

Air Berlin is a Berlin-based air carrier.

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