Air France-KLM accepts tenders for €350 million of 2021, 2022 notes

By Marisa Wong

Los Angeles, Jan. 14 – Air France-KLM announced the final results of its cash tender offer to repurchase its €600 million outstanding 3 7/8% notes due June 18, 2021, €400 million outstanding 3¾% notes due Oct. 12, 2022 and €600 million 6¼% undated deeply subordinated fixed-rate resettable notes callable in October 2020 with €403.3 million currently outstanding.

The company said it received tenders for a total of €677.7 million, or 48.3%, of the outstanding notes and has accepted for purchase €350 million of the notes, including €311.2 million of 2021 notes and €38.8 million of 2022 notes.

No undated notes will be repurchased, according to a Tuesday press release.

The tender offer expired on Jan. 13.

After the tender offer there will be €1,053,300,000 of the notes outstanding, including €288.8 million of 2021 notes, €361.2 million of 2022 notes and €403.3 million of undated notes.

The tender offer will be funded in whole with proceeds from an issuance of new notes. The company announced on Friday that it priced €750 million of five-year notes with a coupon of 1 7/8%.

As announced on Jan. 6, the tender offer was conditioned on settlement of the concurrent new issue of euro-denominated senior fixed-rate benchmark notes.

The company said the tender offer is part of its ongoing dynamic management of its balance sheet structure and, combined with the new notes issue, will help reduce the overall cost of debt and extend its maturity profile.

The airline is based in Roissy, France.

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