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27th April 2012
Deutsche Lufthansa issued €600 million unsecured and unsubordinated bonds.
The bonds have a denomination of €100,000 per bonds, and a fixed coupon 0.00% per annum. The transaction was multiple times oversubscribed.
“The success of the transaction was based on strong investor demand and the strong recent performance of our share price,” said Lufthansa CFO Till Streichert. “Our solid balance sheet and investment grade rating provides us access to a wide and diverse range of financing instruments. Combining the issuance with a partial tender offer for our outstanding convertible bond further increased its attractiveness and aligns the interests of all stakeholders. The oversubscription of multiple times once again highlights the capital market's confidence in our company.”
The bonds will be redeemed on September 10, 2032.
Deutsche Lufthansa intends to use the proceeds from the offering to finance the convertible bonds tender offer and for general corporate purposes including the refinancing of existing debt.
The company announced the results of its cash tender offer for up to €300 million of its 2.00% convertible bonds due 2025 the following day on September 4.
The repurchase price was set at 100.6% of the principal amount, plus accrued interest. Lufthansa will repurchase €300 million of the bonds, equal to 50% of the understanding €600 million issue, funded by the proceeds of the convertible bonds issuance.
After settlement, expected on September 11, 2025, €300 million of the 2025 bonds will remain outstanding.