Finnair plans cash tender offer for €120 million hybrid bonds at 102

By Susanna Moon

Chicago, Nov. 13 - Finnair plc said it plans a cash tender offer for its outstanding €120 million hybrid bonds at 102% of par.

The offer will end at 2 p.m. ET on Nov. 21 with settlement set for Nov. 26.

The tender offer is conditioned on completion of a new hybrid bond, with the targeted minimum size of the issue about €80 million, according to a company press release. The new issue is conditioned on completion of the tender offer, and the new hybrid bonds will not be issued without enough tenders for the outstanding hybrid bonds, the release noted.

Nordea Markets is the tender agent for the tender offer.

The hybrid bonds were issued in September 2009 and are callable in September 2013.

"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 in the release.

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

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