By Abigail W. Adams
Portland, Me., May 18 – International Consolidated Airlines Group SA priced an upsized €825 million of seven-year convertible bonds on May 11 at par with a coupon of 1.125% and an initial conversion premium of 45%, according to a company news release.
Pricing came at the cheap end of talk for an initial conversion premium of 45% to 50%.
BofA Securities Europe SA, Deutsche Bank AG and HSBC are joint global coordinators for the offering, which was marketed to qualified institutional buyers in the European Economic Area.
BNP Paribas, Citigroup Global Markets Europe AG and Credit Suisse are joint bookrunners.
The bonds are non-callable until June 8, 2026 and then subject to a 130% hurdle.
They will be traded on the open market of the Frankfurt Stock Exchange.
Proceeds will be used to strengthen the company’s balance sheet and increase liquidity.
International Consolidated Airlines is a London-based airline.
| Issuer: | International Consolidated Airlines Group SA
|
| Securities: | Convertible bonds
|
| Amount: | €825 million
|
| Maturity: | 2028
|
| Bookrunners: | BofA Securities Europe SA, Deutsche Bank AG, HSBC, BNP Paribas, Citigroup Global Markets Europe AG and Credit Suisse
|
| Co-managers: | Caixabank, Commerzbank AG, MUFG and SMBC Nikko
|
| Coupon: | 1.125%
|
| Price: | Par
|
| Yield: | 1.125%
|
| Conversion premium: | 45%
|
| Conversion rate: | 3.3694
|
| Call options: | Non-callable until June 8, 2026 and then subject to a 130% hurdle
|
| Pricing date: | May 11
|
| Distribution: | QIBS in EEA
|
| Talk: | Initial conversion premium of 45% to 50%
|
| Stock symbol: | London: IAG
|
| Stock price: | £196.56
|
| Market capitalization: | £9.75 billion
|
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