Air France says Natixis offers to buy its 2.75% Oceane convertibles

By Angela McDaniels

Tacoma, Wash., Dec. 12 - Air France said Natixis began a tender offer for its 2.75% Oceane convertible bonds due 2020, which are exchangeable for new or existing shares of Air France KLM.

The purchase price is €21.00 per bond, according to an Air France news release.

The offer began Dec. 7 and ends Dec. 13.

The €449,987,792 of outstanding bonds have a principal amount of €20.50 each.

Air France wants to lower the number of bonds that might be put back to it on April 1, and it entered into a four-year swap agreement with Natixis.

Each year, Natixis will pay Air France an amount equal to the interest received on the bonds it purchased, and Air France will pay Natixis a sum equal to Euribor plus a margin applicable to the price of the bonds purchased by Natixis.

The agreement includes the provision of standard guarantees by Air France for the benefit of Natixis.

At the latest, the agreement will expire on April 1, 2016.

When the agreement expires, Air France will receive the bond market value allocated to the swap cover and will pay Natixis the swap cover constitution price, with Air France receiving from Natixis the positive performance of the bonds or paying Natixis the negative performance of the bonds.

Natixis may cover, acquire or sell bonds on the market during the duration of the swap agreement.

Air France KLM is an airline company that includes Paris-based Air France and Amsterdam-based KLM.

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