Air France-KLM completes tender offer

Air France-KLM has successfully bought back €452.7 million of notes in its tender offer from May 13 of its €750 million 1.875% notes due January 2025; and €500 million 3.875% notes due July 2026. The €452.7 million of note purchases comprises €234.8 million of 2025 notes and €217.9 million of 2026 notes. The airline group now has €797.3 million outstanding notes, €515.2 million 2025 notes and €282.1 million of the 2026 notes. The tender offer has been funded in full from the net proceeds of the group’s successful issuance of new five-year bonds totalling €650 million issued under Air France-KLM’s €4.5bn  Medium Term Note (MTN) programme. Air France-KLM stated that the transaction was part of the “ongoing dynamic management of its debt profile making use of its corporate credit ratings released in December 2023” – the company rated BBB- by Fitch and BB+ by S&P – and that the tender offer combined with the new notes issuance would “extend the company’s average maturity profile”.