Air Berlin has launched a new convertible bond of approximately €120 million with a maturity of six years. The bonds, which can be converted into Air Berlin PLC stock, are issued at 100% of nominal value with an annual interest rate of 6%. Air Berlin intends to use the revenue from the sale of these bonds to boost the company’s working capital and for general business purposes. The offering is aimed at international institutional investors outside the USA. Major shareholder and strategic partner Etihad Airways intends to subscribe to 29.2% of the convertible bond.
Credit Suisse is mandated as sole lead manager and sole bookrunner for the bonds offering.
Air Berlin intends to use the revenue for working capital and general business purposes.