Air France-KLM launched (14-Oct-2009) a EUR700 million offering of seven-year bonds. The carrier stated that the level of interest from investors enabled the size of the offering to be increased from the initially planned EUR500 million to EUR700 million. The bonds have a par value of EUR50,000 and bear annual interest at 6.75%. They were priced at 99.323% of par value and will be redeemed at par in Oct-2016. The issue is lead-managed by BNP PARIBAS Corporate & Investment Banking, Calyon, Natixis, Société Générale Corporate & Investment Banking and HSBC as Joint Lead Managers and Joint Book Runners. [more]
The carrier reportedly received more than EUR5 billion of orders for its planned issue of unrated bonds, more than six times the amount offered (Bloomberg, 14-Oct-2009).