Lufthansa Launches EUR 600 Mln Convertible Bonds Due 2032; Announces EUR 300 Mln Tender Offer

Deutsche Lufthansa

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(RTTNews) - Deutsche Lufthansa AG (LHA.DE, DLAKY), a German aviation group, on Wednesday announced that an offering of unsecured and unsubordinated convertible bonds due 2032 in an aggregate principal amount of 600 million euros, with a denomination of 100,000 euros each

Settlement is expected around September 10, and the bonds will be listed on the Frankfurt Stock Exchange's Open Market.

The new bonds will be convertible into new and/or existing no-par value ordinary registered shares of the company.

The new bonds are issued at 100% of principal with no periodic interest, will mature on 10 September 2032 at an accreted redemption amount of 100.9% to 104.5% of principal. The initial conversion price will carry a 40% to 45% premium over the VWAP of Lufthansa's shares on XETRA between launch and pricing.

Simultaneously, Lufthansa invited holders of its 2.00% convertible bonds due 2025 to tender up to 300 million euros for cash via a modified Dutch auction.

Tendered bonds will be repurchased at 100.6% to 101.1% of principal plus accrued interest, with settlement expected on September 11. The invitation excludes participants in the U.S. or other jurisdictions where participation would be unlawful.

Deutsche Lufthansa is currently trading 2.72% lesser at EUR 7.52 on the XETRA.