Finnair considers issuance of hybrid bond and announces invitation to tender its outstanding hybrid bond

Finnair Plc is considering issuance of a new hybrid bond. The potential issue is expected to be launched in the near future subject to market conditions. The targeted minimum size of the issue is approximately EUR 80 million.

”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 future," says Finnair CFO Erno Hildén. At the same time Finnair hereby announces an invitation to tender for cash (subject to restrictions as provided for in the Tender Offer Memorandum) its outstanding EUR 120 million hybrid bond (ISIN: FI4000005798) up to the aggregate amount of new hybrid bonds to be issued. The outstanding hybrid bond was issued in September 2009, and Finnair may exercise an early redemption option in September 2013. The purchase price for the outstanding hybrid bond will be 102 percent of the nominal amount of such notes. The Offer is due to expire at 2 pm EET on 21 November 2012. The settlement date is expected to be 26 November 2012. The tender offer is subject to the successful completion of the issue of the new hybrid bond. The new issue is subject to the successful completion of the tender offer so, that the new hybrid will not be issued without a sufficient amount of tenders for the currently outstanding hybrid bond. A hybrid bond is an instrument which is subordinated to the company’s other debt obligations and which is treated as equity in the IFRS financial statements. The hybrid bond does not confer to its holders the right to vote at shareholder meetings and does not dilute the holdings of the current shareholders. Nordea Markets is acting as the tender agent for the Tender Offer. Nordea Markets is acting as coordinator and Nordea Markets and Pohjola Markets jointly as bookrunners for the potential new issue. Castrén & Snellman Attorneys Ltd acts as legal advisor to Finnair.