Finnair gets tenders for €67.65 million of €120 million bonds

By Toni Weeks

San Diego, Nov. 26 - Finnair plc said it took in tenders for €67.65 million of its outstanding €120 million of hybrid bonds in the company's cash tender offer that expired at 2 p.m. ET on Nov. 21.

The purchase price was 102 plus accrued interest up to the settlement date, Nov. 26.

Following the tender offer, Finnair said it will have two outstanding hybrid bonds: €52.35 million of hybrid bonds issued in 2009 with a first call date of Oct. 7, 2013 and €120 million of hybrid bonds issued on Nov. 26 with a first call date of Nov. 26, 2016.

As previously reported the tender offer was conditioned on completion of the new hybrid bonds with a targeted minimum size of about €80 million. The new issue was conditioned on completion of the tender offer, and the new hybrid bonds could not be issued without enough tenders for the outstanding hybrid bonds, according to a previous press release.

Nordea Markets was the tender agent for the tender offer.

"Finnair has a strong funding position, which we wish to maintain. By the potential issuance of a new hybrid bond and the invitation to tender our outstanding hybrid bond, we want to ensure that Finnair continues to have a flexible capital structure also in the future," Finnair chief financial officer Erno Hilden said when announcing the tender offer.

Finnair Oyj is a Helsinki, Finland-based company active within the airline sector.

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