IAG has announced the offering of €1 billion in senior unsecured bonds in two €500 million tranches, with ‘Series A Bonds’ due March 25, 2025, and ‘Series B Bonds’ due March 25, 2029. The coupon rate has not yet been determined and settlement is expected around March 25, 2021.
On Thursday (March 18, 2021), the International Consolidated Airlines Group (IAG) announced the issue of two series of senior unsecured bonds in two tranches with a total principal amount of €1 billion. T he first €500 million ‘Series A Bonds’ tranche will be due March 25, 2025, while the second €500 million ‘Series B Bonds’ tranche will be due March 29, 2029. The final terms, including principal amount of each series and aggregate principal will be determined and announced shortly, with settlement expected on or about March 25, 2021. The Bonds are targeted to eligible counterparties and professional clients only and will not be available to retail investors in the European Economic Area (EEA) or UK.
The Bonds will bear a fixed rate of interest or coupon which will be determined as part of the bookbuilding process. The net proceeds from the offering will be used by IAG for general corporate purposes, strengthening the Group’s balance sheet, increasing the Group’s overall liquidity position, helping the Group weather a prolonged downturn in air travel, and providing the Group with additional operational and strategic flexibility. An application will be made to Euronext Dublin for the Bonds to be admitted to the Official List and to trading on the regulated market.
The Joint Global Coordinators and Joint Lead Bookrunners for the issue include Goldman Sachs Bank Europe SE, Morgan Stanley Europe SE, Banco Bilbao Vizcaya Argentaria, S.A. and Banco Santander, S.A. Passive bookrunners include BofA Securities Europe S.A. and Crédit Agricole Corporate and Investment Bank, while MUFG Securities (Europe) N.V., NatWest Markets N.V. and Standard Chartered Bank will act as Co-Managers.
Update: March 18, 2021
On Thursday, March 18, 2021, the International Consolidated Airlines Group (IAG), updated the final terms of their previous bond offer announcement. Due to higher than expected demand, the aggregate amount of the Offering will be €1.2 billion, €200 million more than previously announced. As stated earlier, the first tranche (Series A Bonds) will maintain a principal amount of €500 million, while the second tranche (Series B Bonds) has been increased to €700 million. The Series A Bonds (Due March 25, 2025) will bear a fixed interest rate of 2.75 percent, while the Series B Bonds (Due March 25, 2029) will bear a fixed interest rate of 3.75 percent.
Source: IAG