International Consolidated reports tenders of 89.48% of convertibles

By Wendy Van Sickle

Columbus, Ohio, June 27 – International Consolidated Airlines Group SA took in tenders of €447.4 million, or 89.48%, of bonds in its offer to repurchase €500 million of 0.25% convertible bonds due Nov. 17, 2020, according to a notice.

Per €100,000 of bonds, eligible holders will receive €100,350 in cash, plus accrued interest from and including May 17 to but excluding the date of the repurchase of notes. The repurchase price was previously increased from €100,200 per €100,000 of bonds.

The notes will be repurchased by way of reverse book building and is subject to the potential issuance of a new euro-denominated senior unsecured bond, proceeds of which would be used to fund the repurchase price and for general corporate purposes.

The company reported on Thursday that after it settles the repurchase, it plans to call the remaining outstanding 0.25% convertibles for redemption.

Fixed-income investor meetings have been set regarding the potential new issue.

BNP Paribas and J.P. Morgan Securities plc are acting as dealer managers in respect of the buyback invitation of Regulation S bonds.

London-based International Consolidated Airlines is the holding company of British Airways, Iberia and Vueling.

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