Airbus plans €500 million seven-year, 0% convertibles, up 47.5%-62.5%

By Rebecca Melvin

New York, June 26 – Airbus Group SE plans to price up to €500 million of seven-year, 0% convertibles bonds later Friday to be issued at 100% to 102% of par and talked with a 0% to negative 0.28% yield to maturity and a 47.5% to 62.5% initial conversion premium, according to market sources.

The Regulation S deal represents the first convertible issuance for Airbus.

It is being sold via joint bookrunners Societe Generale Corporate & Investment Banking, BNP Paribas and HSBC.

The bonds have a par value of €100,000. They are provisionally callable after four years on July 16, 2019 if the stock trades above 130% of the conversion price.

There is takeover and dividend protection and a clean-up call.

Proceeds will be for general corporate purposes, and are intended to help the company optimize financing costs and diversity its funding sources.

Airbus plans to list the bonds on the open market of the Frankfurt Stock Exchange.

Airbus is a multinational European aerospace and defense company based in Toulouse, France.

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