By Paul A. Harris
Portland, Ore., July 7 – Deutsche Lufthansa AG priced €1 billion of senior notes (expected ratings Ba2/BB-) in two tranches on Wednesday, according to market sources.
The deal included €500 million of 2% three-year notes that priced at 99.283 to yield 2¼%, inside of guidance in the 2½% area and heard to have played to €900 million of demand.
The offering also included €500 million of 3½% eight-year notes that priced at 98.299 to yield 3¾%, inside of the 3 7/8% to 4% guidance and heard to have played to €1 billion of demand.
Joint active bookrunner Citigroup will bill and deliver. Credit Suisse, HSBC and ING were also joint active bookrunners.
The Cologne, Germany-based air carrier plans to use the proceeds for general corporate purposes.
“With the placement of the last corporate bond in February 2021, the Group already secured the refinancing of all financial liabilities due in 2021 and also repaid the €1 billion KfW loan ahead of schedule,” said Remco Steenbergen, Lufthansa chief financial officer, in a Wednesday press release.
“The long-term funds now raised will be used to further strengthen the Lufthansa Group's liquidity.
“The repeated successful placement of a corporate bond again confirms our access to a variety of advantageous financing instruments.
“The two tranches over three and eight years fit perfectly into our maturity profile.
“In addition, we can obtain financing on the capital market at more favorable terms compared with the stabilization measures.
“We are continuing to work systematically on our restructuring measures in order to repay the government stabilization measures as quickly as possible,” Steenbergen said.
Issuer: | Deutsche Lufthansa AG
|
Amount: | €1 billion
|
Securities: | Senior notes
|
Joint active bookrunners: | Citigroup (bill and deliver), Credit Suisse, HSBC and ING
|
Trade date: | July 7
|
Settlement date: | July 14
|
Expected ratings: | Moody's: Ba2
|
| S&P: BB-
|
Distribution: | Regulation S
|
|
Three-year notes
|
Amount: | €500 million
|
Maturity: | July 14, 2024
|
Coupon: | 2%
|
Price: | 99.283
|
Yield: | 2¼%
|
Spread: | Mid-swaps plus 266.9 bps
|
Call protection: | Par call one month prior to maturity
|
Price talk: | 2½% area
|
|
Eight-year notes
|
Amount: | €500 million
|
Maturity: | July 14, 2029
|
Coupon: | 3½%
|
Price: | 98.299
|
Yield: | 3¾%
|
Spread: | Mid-swaps plus 385.6 bps
|
Call protection: | Par call three months prior to maturity
|
Price talk: | 3 7/8% to 4%
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.