Chicago, June 24 – Air France-KLM sold an upsized €800 million two-part offering on Thursday, according to a press release.
The company sold €300 million of 3% notes with a three-year tenor, tight to launch talk of 3 1/8%. Initial price talk was in the 3¼% area. Earlier on Thursday, a market source noted that the tranche was playing to €1.7 billion of demand.
Air France also sold €500 million of 3 7/8% five-year notes, tight to the 4% launch talk. Initial price talk had the notes coming in the 4 1/8% area. The tranche was heard to have been paying to €2 billion of demand.
The deal is expected to price later on Thursday.
Deutsche Bank, Santander and Societe Generale are the global coordinators. HSBC and Natixis are joint active bookrunners.
The notes in both tranches have bullet structures, covered by make-whole calls until three months prior to their respective maturities, at which time they become callable at par.
The Paris-based air carrier plans to use the proceeds to repay corporate debt and pay down the state aid package granted in late May 2020.
| Issuer: | Air France-KLM
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| Issue: | Notes
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| Amount: | €800 million
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| Bookrunners: | Deutsche Bank, Santander, Societe Generale, HSBC and Natixis
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| Trade date: | June 24
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| Settlement date: | July 1
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| Distribution: | Regulation S
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| Three-year notes
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| Amount: | €300 million
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| Tenor: | Three years
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| Coupon: | 3%
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| Call features: | Make-whole call until three months before maturity
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| Price talk: | Launch at 3 1/8%; initial price talk in 3¼% area
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| Five-year notes
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| Amount: | €500 million
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| Tenor: | Five years
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| Coupon: | 3 7/8%
|
| Call features: | Make-whole call until three months before maturity
|
| Price talk: | Launch at 4%; initial price talk in 4 1/8% area
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