Air France-KLM announces the successful issuance of new bonds for a total aggregate amount of €650 million

Rhea-AI Summary

Air France-KLM has successfully issued new bonds worth €650 million with a 5-year maturity and a 4.625% coupon.

The issuance, under its €4.5 billion Euro Medium Term Note Programme, saw strong demand, with an orderbook exceeding €2.8 billion, showcasing investor confidence. The new bonds are expected to be rated BBB- by Fitch and BB+ by S&P.

Proceeds will be used to refinance existing debt, including €750 million 1.875% notes due January 2025 and €500 million 3.875% notes due July 2026, and for general corporate purposes. An application for trading on Euronext Paris will be made.

Positive

• Successful issuance of €650 million in new bonds.
• Strong investor demand with an orderbook above €2.8 billion.
• Bonds expected to be rated BBB- by Fitch and BB+ by S&P.
• Proceeds will refinance existing debt, improving financial stability.
• Application for trading on Euronext Paris.

Negative

• Refinancing existing debt indicates ongoing financial obligations.
• Coupon rate of 4.625% represents a cost to the company.
• Upcoming debt maturities in January 2025 and July 2026.

Paris, 14 May 2024

Air France-KLM announces the successful issuance of new bonds for a total aggregate amount of €650 million

Air France-KLM (the “Company”) has successfully placed new bonds today, for a total nominal amount of €650 million with a 5-year maturity and a coupon of 4.625% (the “New Notes”) under its Euro 4,500,000,000 Euro Medium Term Note Programme. The New Notes are expected to be rated BBB- by Fitch and BB+ by S&P.

Strong investor demand, with an orderbook above €2.8 billion that covered c.4.3x the size of the bonds, is a testament to investors’ confidence in Air France-KLM.

The Company announced on 13 May 2024 the launch of a tender offer to repurchase the following two series of existing notes in cash:

• €750,000,000 1.875 per cent notes due 16 January 2025 (ISIN: FR0013477254) (of which €750,000,000 is currently outstanding) (the “2025 Notes”); and
• €500,000,000 3.875 per cent notes due 1^st July 2026 (ISIN: FR0014004AF5) (of which €500,000,000 is currently outstanding) (the “2026 Notes” and, together with the 2025 Notes, the “Existing Notes”).

The proceeds of the New Notes will be used to refinance part of the existing debt of the Company by purchasing all or part of the Existing Notes and for general corporate purpose.

An application will be made for the New Notes to be admitted to trading on Euronext Paris.

Investor Relations                                                        

Michiel Klinkers                        Marouane Mami                                                            

michiel.klinkers@airfranceklm.com        marouane.mami@airfranceklm.com

Website: www.airfranceklm.com

Attachment

• Air France-KLM announces the successful issuance of new bonds for a total aggregate amount of €650 million

FAQ

What is the amount of the new bonds issued by Air France-KLM?

Air France-KLM issued new bonds totaling €650 million.

When were the new bonds issued by Air France-KLM announced?

The new bonds were announced on May 14, 2024.

What is the coupon rate of the new Air France-KLM bonds?

The coupon rate is 4.625%.

What are the expected ratings for the new bonds issued by Air France-KLM?

The new bonds are expected to be rated BBB- by Fitch and BB+ by S&P.

What will Air France-KLM use the proceeds from the new bonds for?

The proceeds will be used to refinance existing debt and for general corporate purposes.

What existing notes is Air France-KLM planning to repurchase with the new bond proceeds?

Air France-KLM plans to repurchase €750 million 1.875% notes due January 2025 and €500 million 3.875% notes due July 2026.

On which exchange will the new Air France-KLM bonds be traded?

The new bonds will be traded on Euronext Paris.