Air France-KLM has reported a successful issuance of new bonds totalling €650 million. The five-year paper, which was issued under Air France-KLM’s €4.5bn Medium Term Note (MTN) programme.
The New Notes are rated BBB- by Fitch and BB+ by S&P.
The issue reports strong investor demand, with an orderbook above €2.8bn that covered c.4.3x the size of the bonds, which Air France-KLM said was a testament to investors’ confidence in the company.
Air France-KLM has also launched a tender offer to repurchase two series of existing notes in cash: €750 million 1.875% notes due January 2025; and €500 million 3.875% notes due July 2026. The full amount of both series of notes remains outstanding.
As a result of the successful issuance of the new notes, Air France-KLM increased the maximum acceptance amount for its tender offer from €350 million to €450 million.
The proceeds of the new notes will be used to refinance part of the company’s existing debt by purchasing all or part of the existing notes and for general corporate purposes.
Air France-KLM MTN Eurobond flies
