International Airlines Group (IAG) is launching a senior unsecured convertible bond offer of up to an approximate maximum amount of €400 million to fund its acquisition of Vueling, enhance liquidity and lower its cost of capital.The bonds, which are due to mature in 2018, can be converted into ordinary shares of IAG. It is expected that the bonds' conversion price will be set at a premium of between 30 - 35 per cent with a fixed rate of interest between 1.75 – 2.5 per cent, payable semi-annually in arrears. The final size of the offer will be determined at the time of pricing which is expected to be later today. Full conversion of the bonds would increase the number of IAG shares in issue by up to five per cent.
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