By Marisa Wong
Morgantown, W.Va., Feb. 9 – Air Berlin plc said subsidiary Air Berlin Finance BV is offering to exchange its existing €140 million 6% guaranteed convertible bonds due March 6, 2019 for new 8.5% guaranteed convertible bonds due March 6, 2019 on a one-to-one basis.
The company also plans to issue up to an additional €85 million of the new convertible bonds at par with the same terms as the bonds issued under the exchange offer, according to a press release.
As a result, Air Berlin Finance intends to issue an aggregate principal amount of up to €225 million of the 8.5% convertibles.
The new 8.5% bonds will have an initial conversion price of €1.15. The 6% bonds are convertible at €2.11.
The new bonds are putable on Dec. 29, 2017, while the existing bonds are putable on March 6.
The exchange and subscription period began on Feb. 9 and ends on Feb. 17. Settlement is slated for Feb. 22.
Etihad Airways PJSC has notified Air Berlin Finance that it intends to tender all €40 million of its 6% convertibles for exchange into the new 8.5% bonds, according to the release.
In addition, in order to support the offering of the new bonds, Etihad Airways will enter into a total return swap with dealer manager and bookrunner HSBC Bank plc for a proportion of the new bonds. The notional amount of the new bonds that will be subject to the total return swap will be determined following expiration of the exchange offer period.
The airline is based in Berlin.
New bonds
| Issuer: | Air Berlin Finance BV
|
| Guarantor: | Air Berlin plc
|
| Issue: | Convertible bonds
|
| Amount: | Up to €225 million
|
| Maturity: | March 6, 2019
|
| Bookrunner: | HSBC Bank plc
|
| Coupon: | 8.5%
|
| Conversion price: | €1.15
|
| Put option: | Dec. 29, 2017
|
| Offer period: | Feb. 9-Feb. 17
|
| Settlement date: | Feb. 22
|
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