Finnair approved a €570 million fully underwritten rights offering on October 27, with pre-emptive rights for existing shareholders and a maximum of 19,012,413,069 new shares.
The rights issue is aimed at reducing Finnair’s financing costs, support strategy execution to drive sustainable profitable growth, and ensure ability for future investments. Through the rights issue Finnair says that it is also seeking to reinstate the company's ability for shareholder distributions.
Finnair will use the net proceeds to pay the portion of the €400 million capital loan, which together with the earlier redemption on 1 September 2023 of the company’s €200 million hybrid bond, is expected to provide a sustainable balance sheet and significantly reduce the company’s financing costs.
Finnair aims to offer up to 19,012,413,069 Offer Shares for subscription with pre-emptive rights for existing shareholders in Finnair. The subscription price is €0.03 per Offer Share, which implies a discount to the theoretical ex-rights price (TERP) of 39.4%, based on the closing price of the Finnair’s share on Nasdaq Helsinki on 26 October 2023.
October 30 is the first trading date of Finnair’s shares without Subscription Rights. The subscription period for the Offer Shares commences on 3 November 2023 to 17 November 2023.
Finnair’s major shareholders, the State of Finland (representing a share of approximately 55.8%), Varma Mutual Pension Insurance Company, Elo Mutual Pension Insurance Company and Ilmarinen Mutual Pension Insurance Company (in aggregate representing approximately 3.4% stake), have each committed to subscribe for their respective pro rata share of the offering.
Deutsche Bank and Nordea act as the joint global coordinators, lead managers and underwriters of the offering.
Roschier, Attorneys acts as Finnair’s legal adviser and White & Case acts as the joint global coordinators’ legal adviser in the offering.