European airline group IAG has priced a €1 billion ($1.1 billion) two-tranche senior unsecured bond that will in part repay debt.
After launch on 28 June, the four-year €500 million Series A notes priced at 0.5% while the eight-year €500 million Series B notes carry an interest rate of 1.5%, IAG says in a release.
The net proceeds of the bond issue will be used for general corporate purposes and to fund the repurchase of €500 million worth of existing convertible bonds with a 0.25% coupon which are due to mature in 2020.
BNP Paribas and JP Morgan are acting as joint global co-ordinators and, together with Merrill Lynch International, as joint lead bookrunners, while Santander and Credit Agricole CIB act as passive bookrunners.
The transaction is expected to close on 4 July.
Source: Cirium Dashboard
