Air France-KLM Shares Slide Amid Bond-Issuance Plans
November 16 2022 - 4:23AM
Dow Jones News
By Joshua Kirby
Shares in Air France-KLM lost ground Wednesday after the
Franco-Dutch airline group said it was stepping up repayment of
pandemic-era state aid via an issuance of bonds convertible into
shares worth around 300 million euros ($310.5 million).
At 843GMT, shares traded 9.6% lower at EUR1.27.
The deeply subordinated undated bonds can be converted into new
shares or exchanged for existing ones, equivalent to a maximum 200
million underlying shares and a nominal maximum amount of around
EUR300 million, via a placement to qualified investors only, AF-KLM
said Wednesday.
The net proceeds will be used to accelerate repayment of EUR4
billion in French state aid, granted in April 2021 to relieve the
financial squeeze of the pandemic.
The convertible bonds will have a nominal value of EUR100,000
and a settlement date of Wednesday next week, AF-KLM said. The
reference share price will meanwhile be based on the average price
of the group's Paris-listed shares Wednesday, while the bonds'
conversion or exchange value will be set at a premium of 20%-25%
over this price, the company said.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
November 16, 2022 04:08 ET (09:08 GMT)
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