Air Berlin PLC launches convertible bond

Air Berlin PLC is today launching a new convertible bond of approximately 120 million euros with a maturity of six years. The bonds, which can be converted into Air Berlin PLC stock, are issued at 100 per cent of nominal value with an annual interest rate of 6 per cent. Air Berlin intends to use the revenue from the sale of these bonds to boost the company’s working capital and for general business purposes. The offering is aimed at international institutional investors outside the USA. Major shareholder and strategic partner Etihad Airways intends to subscribe to 29.2 per cent of the convertible bond.

Credit Suisse is mandated as sole lead manager and sole bookrunner for the bonds offering.