Aviation

March 20, 2019
 

AF-KLM launches convertibles offer

Air France-KLM on 20 March launched a €500 million ($570 million) offering of convertible bond due 25 March 2026.

Net proceeds will be used for general corporate purposes, including refinancing of subordinated perpetual notes issued in 2015 and callable in October 2020.

The bonds will be issued at par and carry a coupon ranging from 0.125% to 0.500%.

HSBC, Natixis and Société Générale are acting as joint global coordinators and joint bookrunners of the offering.

The French state, which currently holds 14.29% of the company’s share capital, plans to participate in the placement pro rata to current shareholding.

This issue is the first convertible bond placement in France in 2019.