Due to the success of Air France-KLM offering of bonds convertible into and/or exchangeable for new and/or existing shares (OCEANE) due February 15, 2023 for an initial nominal amount of approximately €480 million, the airline has decided to exercise the extension clause in order to increase the initial issue size to approximately €550 million.
The bond’s nominal value has been set at €10.30 representing an issue premium of 32.50% over Air France-KLM's reference share price (is equal to the volume-weighted average price (VWAP) of Air France-KLM’s shares quoted on Euronext Paris on March 25, 2013 from the opening of trading until 12:00 noon, Paris time, on the same day, i.e. €7.776) on Euronext Paris.
The Bonds will bear interest at a nominal annual rate of 2.03% payable annually in arrears on February 15th of each year, commencing on February 15, 2014 on a prorata temporis basis (short first coupon).
The Bonds will mature and be redeemed in cash at par on February 15, 2023. The Bonds may be early redeemed at the option of Air France-KLM subject to certain conditions. Bondholders will be entitled to request the redemption of the Bonds on February 15th, 2019, at par plus accrued interest.
The conversion / exchange ratio of the Bonds will be one new and / or existing Air France-KLM share per Bond (subject, if applicable, to potential adjustments).
The proceeds of the issuance will be used for the group’s general corporate purposes, notably to finance its fleet and allow for the optimisation of its debt repayment schedule.
The estimated total amount of the group’s investments for the 2013 financial year is €1.2 billion, and the group’s debt maturing in 2013 is €1.3 billion.
The proceeds of the issuance will be made available to Air France for 60% and to KLM for 40%. Air France and KLM will severally and not jointly, irrevocably and unconditionally guarantee the payment of all sums due by Air France-KLM under the Bonds (respectively for 60% and 40% of such guarantee).
During the priority subscription period for shareholders, the Company's shareholders subscribed for an amount of approximately €103.1 million, representing approximately 18.7% of the total issue size, including approximately €87.3 million subscribed by the French State (i.e. 15.9% of the total issue size, corresponding to its current stake in the share capital of Air France-KLM).
Settlement and delivery of the Bonds are scheduled to take place on March 28, 2013.
Air France extends convertible bond offering
