Germany's Lufthansa launched an offering for approximately €525 million of senior unsecured convertible bonds due in 2025 on Tuesday November 10 and, in response to high demand from investors, subsequently increased the volume of the bond offering to €600 million and adjusted the conditions in its own favour.
The airline, which is reeling from the impact of the coronavirus pandemic on travel, said that it plans to use the proceeds for general corporate purposes.
It lowered the coupon to between 2.00% and 2.25% per annum from 2.25% and 2.75%, still payable semi-annually in arrears.
The bonds will be convertible into new and or existing shares and will be offered through an accelerated bookbuilding process to institutional investors.
Adjusted Conversion Price
The initial conversion price was also adjusted to up to 40% above the reference share price from between 30% and 35% earlier.