IAG to redeem convertible bonds

Dino D'Amore
By Dino D'Amore May 9, 2016 19:55

IAG to redeem convertible bonds

International Consolidated Airlines Group (IAG) has exercised its option to redeem all of its outstanding 1.75 per cent convertible bonds due 2018 on 21 June 2016 at their principal amount, which is €386,100,000 in aggregate, plus accrued but unpaid interest.

Deutsche Bank is acting as fiscal, principal paying, transfer and conversion agent.

As an alternative to the redemption of the Bonds, the Bondholders have the option under the terms and conditions of the Bonds to exchange their Bonds for ordinary shares in the Issuer by delivering a duly completed and signed conversion notice and nationality declaration to Deutsche Bank, London Branch by no later than the close of business on 14 June 2016.
The conversion price of the bonds is currently approximately €4.1976 per ordinary share in IAG of which €0.50, in the case of a conversion, per share corresponds to the nominal value and €3.6976 per share corresponds to share premium. The closing price of an ordinary share of IAG was €6.4671 on 5 May 2016.

The Conversion Deadline represents the final opportunity for Bondholders to convert their Bonds into ordinary shares in the Issuer before the redemption of all outstanding Bonds on the Optional Redemption Date.

Dino D'Amore
By Dino D'Amore May 9, 2016 19:55