24th Jun 2019 08:45
(Alliance News) - International Consolidated Airlines Group SA on Monday invited holders of its EUR500.0 million 0.25% convertible bonds due November 2020 to tender their bonds via a reverse bookbuild.
The invitation covers bondholders who do not reside in the US. Eligible bondholders will receive EUR100,200 in cash per EUR100,000 of bonds as well as accrued interest on the bond from May 17, the last interest payment date of the bonds, up to - but not including - the date the repurchase price is paid, the company said.
IAG, which operates British Airways, Iberia, Vueling and Aer Lingus, said it can redeem all bonds at their principal amount plus interest once it has purchased and cancelled 85% or more of its bonds.
The airline said it is "considering a potential issue of euro-denominated senior unsecured bonds" and has arranged investor meetings to discuss this. The new bonds would be used for general corporate purposes, including bond refinancing and repurchasing.
As such, the repurchase of any bonds under the invitation is dependent upon a new bond issue.
IAG shares were down 1.1% in London early Monday at 455.90 pence.
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