This announcement is not for release in the United States of America, Canada, Australia, South Africa or Japan or any other jurisdiction in which such distribution would be prohibited by applicable law
CONVERTIBLE BOND COMPLETION
Following the launch of its senior unsecured convertible bond offer earlier today, International Airlines Group (IAG) has approved the following terms and conditions for the bonds:
· The issue size is €390 million, maturing on May 31, 2018
· The bonds will accrue a fixed rate of interest of 1.75 % per annum, payable semi-annually in arrears. Equal installments of interest will be payable on November 30 and May 31 each year, starting on November 30, 2013
· The conversion price has been set at €4.2503 per ordinary share, which represents a premium of approximately 35 per cent over the volume weighted average price of ordinary IAG shares on the London Stock Exchange from launch to pricing.
The net proceeds of the offer will be used by IAG to fund its acquisition of Vueling, enhance liquidity and lower its cost of capital.
It is anticipated that the bonds will be admitted to the Official List maintained by the UKLA and admitted to trading on the Professional Securities Market (PSM) of the London Stock Exchange.
Subscription and payment for the bonds will take place on the closing date, which is anticipated to take place on May 31, 2013, provided that certain conditions precedent set out in the subscription agreement have been fulfilled.
Banco Santander, Barclays, Deutsche Bank AG, London Branch, Morgan Stanley and UBS Investment Bank are joint book runners and joint lead managers
Important Notice
Stabilisation/FCA
This announcement does not constitute or form part of an offer to sell or the solicitation of an offer to subscribe for or otherwise acquire any securities. The bonds and the ordinary shares have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States.
This announcement is directed only at persons who (i) are outside the United Kingdom, (ii) in the United Kingdom ("UK") who are (a) persons who have professional experience in matters relating to investments who fall within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"), (b) high net worth entities and other persons to whom it may otherwise lawfully be communicated falling within Article 49(1) of the Order, or (c) persons to whom it may otherwise lawfully be communicated or (iii) in any other jurisdiction, where action for that purpose may be required. This announcement must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons.
Banco Santander, Barclays, Deutsche Bank AG, London Branch, Morgan Stanley and UBS Investment Bank are acting for IAG and no one else in connection with the offer of the bonds and will not be responsible to any other person for providing the protections afforded to their client, or for providing advice in relation to the proposed offer of the bonds.
ends
May 14, 2013 IAG15
Forward-looking statements:
Certain information included in these statements is forward-looking and involves risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements.
Forward-looking statements include, without limitation, projections relating to results of operations and financial conditions and International Consolidated Airlines Group S.A. (the 'Group') plans and objectives for future operations, including, without limitation, discussions of the Company's Business Plan, expected future revenues, financing plans and expected expenditures and divestments. All forward-looking statements in this report are based upon information known to the Company on the date of this report. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
It is not reasonably possible to itemise all of the many factors and specific events that could cause the Company's forward-looking statements to be incorrect or that could otherwise have a material adverse effect on the future operations or results of an airline operating in the global economy. Further information on the primary risks of the business and the risk management process of the Group is given in the Annual Report and Accounts 2012; these documents are available on www.iagshares.com.
