Lufthansa successfully issues convertible bonds worth 600 million euros

Germany

Deutsche Lufthansa AG successfully placed today unsecured and unsubordinated convertible bonds in an aggregate principal amount of 600 million euros.

The bonds have a denomination of 100,000 euros per bond, and a fixed coupon of 0.00 percent per annum. The transaction was multiple times oversubscribed.

Till Streichert, CFO of Lufthansa, says:

“We are very pleased with the successful issuance of a new convertible bond at highly attractive conditions. The success of the transaction was based on strong investor demand and the strong recent performance of our share price. Our solid balance sheet and investment grade rating provides us access to a wide and diverse range of financing instruments. Combining the issuance with a partial tender offer for our outstanding convertible bond further increased its attractiveness and aligns the interests of all stakeholders. The oversubscription of multiple times once again highlights the capital market’s confidence in our company.”

Unless previously converted, redeemed or repurchased and cancelled, the bonds will be redeemed on 10 September 2032 at their accreted redemption amount, which was set at 102.66 percent of their principal amount. Investors also have the possibility to convert the bonds into new and/or existing no-par value ordinary registered shares of the company. The initial conversion price was set at 10.7550 euros, representing a conversion premium of 42.5 percent above the reference share price of 7.5474 euros.

Deutsche Lufthansa AG intends to use the proceeds from the offering to finance the convertible bonds tender offer (as announced earlier today) and for general corporate purposes including the refinancing of existing debt.

Deutsche Lufthansa AG has agreed not to offer any shares or equity-linked securities within a period of 90 calendar days after the settlement of the offering, and not to enter into any transaction having a similar economic effect, subject to customary exemptions.