IAG complete convertible bond launch; Hawaiian issues EETC

Victoria
By Victoria May 14, 2013 10:46

IAG complete convertible bond launch; Hawaiian issues EETC

International Airlines Group (IAG) has issued €390 million convertible bonds, maturing on May 31, 2018 to fund it acquisition of Vueling. The bonds will accrue a fixed rate of interest of 1.75 % per annum, payable semi-annually in arrears. Equal installments of interest will be payable on November 30 and May 31 each year, starting on November 30, 2013
The conversion price has been set at €4.2503 per ordinary share, which represents a premium of approximately 35% over the volume weighted average price of ordinary IAG shares on the London Stock Exchange from launch to pricing.
The net proceeds of the offer will be used by IAG to fund its acquisition of Vueling, enhance liquidity and lower its cost of capital.
IAG anticipates the bonds to be admitted to the Official List maintained by the UKLA and admitted to trading on the Professional Securities Market (PSM) of the London Stock Exchange.
Subscription and payment for the bonds will take place on the closing date, which is anticipated to take place on May 31, 2013, provided that certain conditions precedent set out in the subscription agreement have been fulfilled.
Banco Santander, Barclays, Deutsche Bank AG, London Branch, Morgan Stanley and UBS Investment Bank are joint book runners and joint lead managers

Meanwhile, Hawaiian Airlines has announced its inaugural $444.540 million EETC. Citi is acting as Sole Structuring Agent and Joint Bookrunner. The transaction consists of $328 million Class A notes, with a 12.6yr tenor and 9yr weight annual life, rated Ba1 from Moody’s / BBB+ by S&P / A- by Fitch, with a 52.8% initial/max LTV. The Class B notes total $116million, with an 8.6yr tenor and 6.9yr WAL, the notes were rated B1 / BB- / BB with an initial/max LTV of 71.5%.
The collateral consists of six new Airbus A330-200 aircraft.

Victoria
By Victoria May 14, 2013 10:46
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