Airbus launches €1 billion 0% five-year bonds exchangeable into Dassault Aviation, up 45%

By Rebecca Melvin

New York, June 9 – Airbus Group SE plans to price €1 billion of 0% five-year bonds exchangeable into shares of Dassault Aviation SA at 102.5% to 105% of par to yield minus 0.97% to minus 0.49% with an initial conversion premium of 45%, according to a news release.

Airbus is also selling about 0.83 million of Dassault Aviation shares and Dassault Aviation is buying back 502,282 shares.

Upon completion of the share offering and in case of the exchange in full of the bonds, Airbus Group will have fully disposed of its Dassault Aviation stake.

The €100,000 exchangeables are callable under certain conditions, and holders of the bonds may exercise their exchange right at any time after July 25 or in the event of early redemption.

BofA Merrill Lynch, BNP Paribas, Deutsche Bank AG, London Branch, Goldman Sachs International and JPMorgan are acting as joint bookrunners of both the equity placement and the bond issue on behalf of Airbus Group. Rothschild & Cie is acting as financial adviser.

Proceeds will be used for the general corporate purposes of Airbus Group.

Final terms are expected to be announced Friday. Settlement is expected June 14. Application is being made to list the bonds on the Frankfurt Stock Exchange.

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

Paris-based Dassault is an international maker of aircraft.

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