AIR FRANCE-KLM ADS - AFLYY STOCK NEWS

Air France-KLM successfully placed deeply subordinated undated bonds convertible into shares, raising €305.3 million. The offering was significantly oversubscribed, showcasing investor confidence, particularly from long-only funds. Proceeds will be used to repay perpetual bonds held by the French State. The bonds feature a 6.5% annual interest rate for the first three years, increasing thereafter. The conversion premium is set at 22.5% over the Company's reference share price of €1.2464. Maximum potential shareholder dilution is approximately 7.8%.

Air France-KLM has successfully closed the bookbuilding for its offering of undated deeply subordinated bonds totaling approximately EUR 300 million. This offering is exclusively for qualified investors, with strong demand exceeding the target amount. The bonds, convertible into new or exchangeable for existing shares, will finalize their pricing based on the volume-weighted average price of the stock on the Euronext Paris after today’s trading. Settlement is anticipated by 23 November 2022. CMA CGM, holding 9.0% of Air France-KLM, has participated proportionally.

Air France-KLM has launched an offering of deeply subordinated undated bonds convertible into new shares for a nominal amount of approximately EUR 300 million. The offering targets qualified investors and aims to utilize the net proceeds to fully repay perpetual bonds held by the French State, issued in April 2021. The initial conversion price will be set at a 20% to 25% premium over the reference share price on the offering date. The bonds will bear interest between 5.75% and 6.50% until November 2025, after which the interest rate will adjust significantly.

The press release provides details on the number of voting rights and shares for AFLYY as of October 31, 2022. The total number of shares is reported at 2,570,536,136, while the theoretical number of voting rights, which includes double voting rights, is 2,792,576,471. This information is in accordance with the French code of commerce and general rules of the French market authority (AMF). It highlights compliance with regulatory requirements concerning shareholder voting rights.

Air France-KLM has announced the early repayment of €1 billion of a €3.5 billion state-backed loan, improving its debt profile and reducing financial costs. This decision is attributed to a significant recovery in operating performance, leading to a net cash position nearing €9.8 billion. The early repayment includes €800 million for a tranche maturing in May 2023 and €200 million for another maturing in May 2024. Overall, the outstanding amount of the loan is now €2.5 billion, with further repayments scheduled for May 2024 and 2025.

Air France-KLM reported strong Q3 2022 results, with revenues reaching €8.1 billion, surpassing 2019 levels by €503 million. The operating result stood at €1,024 million, marking a 12.6% operating margin. Passenger numbers increased by 47.6% to 25 million, driven by a 29.1% rise in capacity. Despite inflationary pressures, net debt decreased by €2.3 billion, reaching €5.965 billion. The group anticipates a full-year operating result exceeding €900 million, bolstered by robust demand for travel and continued transformation efforts.

The press release details the number of voting rights for the company as of September 30, 2022. The total number of shares outstanding is reported at 2,570,536,136. Meanwhile, the theoretical number of voting rights, which includes double voting rights, totals 2,792,569,139. This information is provided in compliance with the French market authority regulations to ensure transparency for shareholders.

The latest press release discloses the total number of voting rights and shares for AFLYY as mandated by L.233-8 II of the code of commerce. As of August 31, 2022, the company reported a total of 2,570,536,136 shares, which includes a theoretical number of voting rights of 2,792,568,004, accounting for double voting rights.

This information is relevant for shareholders and potential investors, ensuring compliance with regulatory requirements and transparency in corporate governance.

Air France-KLM has received exclusivity from the Italian Government to negotiate a potential acquisition of a stake in ITA Airways, alongside equity partner Certares and commercial partner Delta Air Lines. While Air France-KLM is not currently investing in ITA's capital structure, it may consider taking a minority stake in the future. The partnership aims to enhance commercial opportunities, including codeshare agreements and ITA's entry into the SkyTeam alliance. This move underscores Air France-KLM's commitment to expanding its presence in the North Atlantic market and collaborating on joint frequent flyer programs.