Through a statement, the IAG Group announced today the issuance of two series of senior unsecured bonds.
• The first tranche will be made for a proposed initial nominal amount of approximately 500,000,000.00 euros due on March 25, 2025 (the “Series A Bonds”).
• The second tranche will be made for a proposed initial nominal amount of approximately 500,000,000.00 euros due on March 25, 2029 (the “Series B Bonds” and, together with the Series A Bonds, the “Bonds”).
In accordance with the foregoing, the joint nominal amount of the Bonds issued will be approximately 1,000,000,000.00 euros.
It is expected that the fixing of the definitive terms of the Bonds, including the nominal amount of each series and the joint nominal amount of the Bonds, will be announced shortly and that the liquidation and issuance of the Bonds will take place around the 25th of March 2021.
The target market for the Bonds is eligible counterparties and professional clients only. The Bonds are not intended to be offered, sold, or made available in any other way and must not be offered, sold, or made available to any retail investor in the European Economic Area (EEA). No key information document of the EU PRIIP Regulation has been produced as the Bonds are not available to retail investors in the EEA.
The Bonds are not intended to be offered, sold, or otherwise made available and must not be offered, sold, or made available to any retail investor in the UK. No key information document has been produced on the UK PRIIP Regulation as the Notes are not available to retail investors in the UK.
The Bonds are expected to accrue interest at a fixed rate, the determination of which will take place within the framework of the placement process. IAG’s intention is that the Bonds be issued at 100 percent of their face value and, except for early redemption or purchase and early cancellation, they will be redeemed for 100 percent of their face value on their respective maturity dates. The final issue price will be determined during the placement process.
IAG will have the option of early redemption of all the Bonds in accordance with the provisions of its terms and conditions.
The net funds obtained in the Issue will be used for general corporate purposes (including, but not limited to, (i) strengthening the Group’s balance sheet and increasing the Group’s general liquidity position; (ii) helping the Group to withstand a further slowdown prolonged duration in air travel; and (iii) provide the Group with operational and strategic flexibility to take advantage of the recovery in air travel demand).
An application will be submitted to Euronext Dublin for the Bonds to be admitted to the Official List and traded on the regulated market. Euronext Dublin’s regulated market is a regulated market for the purposes of MiFID II.
Goldman Sachs Bank Europe S.E., Morgan Stanley Europe S.E., Banco Bilbao Vizcaya Argentaria, S.A. and Banco Santander, S.A. they act as Joint Global Coordinators and as Joint Lead Bookrunners. BofA Securities Europe SA and Credit Agricole Corporate and Investment Bank act as Passive Bookrunners. MUFG Securities (Europe) N.V., NatWest Markets N.V. and Standard Chartered Bank act as Co-Managers.
