Deutsche Lufthansa has successfully placed €600 million of 2.0% senior unsecured convertible bonds. The sale is reported to been more than six times oversubscribed.
The airline group has further strengthened its liquidity with this issuance, and as of 30 September it had €10.1 billion of cash at its disposal (including stabilisation measures in Germany, Switzerland, Austria and Belgium, which have not yet been utilised).
“The transaction proves that Lufthansa still has access to attractive financing despite the Corona pandemic and highlights the trust in Lufthansa as a borrower and the Group's good international reputation. It is another successful step towards refinancing existing liabilities and government stabilisation measures,” says Wilken Bormann, Executive Vice President Group Finance Lufthansa Group.
Unless previously converted, redeemed or repurchased and cancelled, the bonds will be redeemed at their principal amount on 17 November 2025. Investors also have the possibility to convert the bonds into new and/or existing no-par value ordinary registered shares of the company. The initial conversion price was set at €12.96, representing a conversion premium of 40% above the reference share price of €9.2545.