Success of Air France-KLM’s €800 million notes issue via two tranches

Rhea-AI Summary

Air France-KLM successfully issued €800 million in senior notes through two tranches. The first tranche of €300 million has a 3-year maturity with a 3% annual coupon, while the second tranche of €500 million has a 5-year maturity with a 3.875% coupon. Proceeds from this issuance will refinance existing market debt and part of the State Aid debt from May 2020. The settlement date is set for July 1, 2021. This move is part of the company's strategy to bolster its balance sheet and prepare for recovery.

Positive

• Successful issuance of €800 million in senior notes.
• Refinancing of existing market and State Aid debt.
• Strengthening of balance sheet and liquidity.

Negative

• None.

Success of Air France-KLM’s €800 million notes issue via two tranches

Roissy (France), 24 June 2021 – Air France-KLM (the “Company”) (Euronext Paris: FR0000031122) announces today the successful placement of an issue of €800 million senior notes (the “Notes”) via two tranches:
- On the first tranche, the final size of the senior notes is €300 million with a 3-year maturity and bear coupon at an annual rate of 3%.
- On the second tranche, the size of the senior notes is €500 million with a 5-year maturity and bear coupon at an annual rate of 3.875%.

The net proceeds of the issue will be used to refinance (i) the redemption of the outstanding market debt of the Issuer, and gradually (ii) part of the State Aid debt package granted late May 2020.The settlement date of the issue of the Notes is scheduled for 1st July 2021.

This transaction is part of the Company’s ongoing plan to reinforce the balance sheet, manage liquidity and prepare for recovery.

Investor Relations   Olivier Gall +33 1 49 89 52 59 olgall@airfranceklm.com

Michiel Klinkers +33 1 49 89 52 60 Michiel.Klinkers@Airfranceklm.com

Press     +33 1 41 56 56 00

Disclaimer

This press release does not constitute an offer to subscribe the Notes. The issue of the Notes will be subject to a prospectus submitted to the approval of the French Autorité des marchés financiers for the purpose of the admission of the Notes to trading on the regulated market of Euronext Paris. The settlement of the issue of the Notes remains subject to such approval.

This press release is not a prospectus for the purposes of the Regulation (EU) 2017/1129 (the “Prospectus Regulation”).

The Notes are not being subject to a public offering in any country or jurisdiction, including in France, to any person other than qualified investors.

The distribution of this press release may be restricted by law in certain jurisdictions. Persons into whose possession this press release comes should inform themselves about and observe any applicable legal and regulatory restrictions.

Prohibition of sales to EEA retail investors

The Notes are not intended to be offered, sold or otherwise made available to and should not be offered, sold, or otherwise made available to any retail investors in the European Economic Area (the “EEA”). For these purposes, a retail investor means a person who is one (or more) of:

(i)      a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU as amended (“MiFID II”); and/or


(ii)      a customer within the meaning of Directive 2016/97/EU as amended, where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II.


France

This press release is only directed at qualified investors as defined in Article 2 point (e) of the Prospectus Regulation and in accordance with Article L. 411-2, 1° of the French Code monétaire et financier.

United Kingdom

This press release is only directed at qualified investors who are (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order, or (iii) other persons to whom it may otherwise be lawfully communicated.

United States

This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for notes nor of any offer or solicitation to sell notes in the United States. The notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) or with any securities regulatory authority of any state or other jurisdiction in the United States, and may not be offered, sold, pledged or otherwise transferred within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S of the Securities Act (each a “U.S. Person”)), directly or indirectly. The notes are being offered and sold only outside the United States to non-U.S. Persons in compliance with Regulation S under the Securities Act.

Attachment

• Clearsky_CP Succès nouvelle émission_EN_final

FAQ

What are the details of Air France-KLM's recent €800 million notes issue?

Air France-KLM issued €800 million in senior notes, split into two tranches: €300 million at 3% for 3 years and €500 million at 3.875% for 5 years.

How will Air France-KLM use the proceeds from the notes issue?

The proceeds will refinance existing market debt and part of the State Aid debt granted in May 2020.

When is the settlement date for Air France-KLM's notes issue?

The settlement date for the notes issue is scheduled for July 1, 2021.

What maturity periods do the two tranches of Air France-KLM's notes have?

The first tranche has a 3-year maturity, and the second tranche has a 5-year maturity.

What are the coupon rates for Air France-KLM's senior notes?

The first tranche carries a coupon rate of 3%, while the second tranche has a rate of 3.875%.