26th Jun 2019 18:31
(Alliance News) - Moody's Investors Service on Wednesday assigned a Baa3 rating to International Consolidated Airlines Group SA's proposed issue of up to EUR1 billion in new senior unsecured notes.
The EUR1 billion notes are expected to be issued in two tranches, the proceeds of which are to be used to refinance the company's EUR500 million convertible bond due 2020, as well as repay debt and other corporate purposes.
Moody has kept a stable outlook for IAG, as well as a Baa3 long term issuer ratings, which is said to reflect the company's large scale and strong brands, strong market positions on certain routes and track record of improved profitability.
The rating also reflects industry headwinds including rising fuel costs, the risk of a disorderly Brexit, and debt-funded acquisitions that constitute an event risk.
On Monday, IAG invited holders of its EUR500.0 million 0.25% convertible bonds due November 2020 to tender their bonds via a reverse bookbuild.
The British Airways and Iberia operator on Wednesday increased the repurchase price of the bonds to EUR100,350 per EUR100,000 of bonds from EUR100,200 per EUR100,000.
Shares in IAG closed 2.3% higher at 449.40 pence on Wednesday.
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