IAG launches two tranches of convertible bonds
British Airways and Iberia parent International Consolidated Airlines Group said it is launching an offer of two tranches of senior unsecured bonds convertible into ordinary IAG shares.
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The first tranche has a proposed initial principal amount of about €500m due 2020, while the second has a proposed initial principal amount of approximately €500m due 2022.
The final terms of the bonds are expected to be determined and announced later on Thursday, while settlement is expected on or about 17 November.
IAG said the offering does not require approval by IAG shareholders and is being issued by IAG under the powers delegated to its board at its annual general meeting in June.
The carrier said the net proceeds from the offering will be used for general corporate purposes, including the repayment of a bridge facility entered into by its subsidiary AERL Holding Ltd, to finance its acquisition of Aer Lingus.