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Deutsche Lufthansa AG has completed the placement of unsecured and unsubordinated convertible bonds with a total principal amount of 600 million euros. Each bond is denominated at 100,000 euros and carries a fixed coupon rate of 0.00 percent per year. The company reported that investor demand was strong, resulting in the transaction being oversubscribed several times.
Till Streichert, Chief Financial Officer of Lufthansa, stated: “We are very pleased with the successful issuance of a new convertible bond at highly attractive conditions. The success of the transaction was based on strong investor demand and the strong recent performance of our share price. Our solid balance sheet and investment grade rating provides us access to a wide and diverse range of financing instruments. Combining the issuance with a partial tender offer for our outstanding convertible bond further increased its attractiveness and aligns the interests of all stakeholders. The oversubscription of multiple times once again highlights the capital market’s confidence in our company.”
The bonds will mature on September 10, 2032, unless converted, redeemed, or repurchased before that date. They will be redeemed at an accreted redemption amount set at 102.66 percent of their principal value. Investors have the option to convert their bonds into new or existing ordinary registered shares in Lufthansa, with an initial conversion price set at 10.7550 euros per share—a premium of 42.5 percent above the reference share price.
