Lufthansa issues convertible bond in the amount of €600 million 1

Lufthansa issues convertible bond in the amount of €600 million

Deutsche Lufthansa AG successfully placed senior unsecured convertible bonds in an aggregate principal amount of EUR 600 million. The Bonds have a denomina­tion of EUR 100,000 per Bond, and a coupon of 2.0 percent per annum. The transaction was more than 6 times oversubscribed.

The Company thereby further strengthens its liquidity. As of 30 September the Company had EUR 10.1 billion of cash at its disposal (including stabilization measures in Germany, Switzerland, Austria and Belgium which have not yet been utilized).

“The transaction proves that Lufthansa still has access to attractive financing de­spite the Corona pandemic and highlights the trust in Lufthansa as a borrower and the Group’s good international reputation. It is another successful step towards re­financing existing liabilities and government stabilization measures“, says Wilken Bormann, Executive Vice President Group Finance Lufthansa Group.

Unless previously converted, redeemed or repurchased and cancelled, the Bonds will be redeemed at their principal amount on 17 November 2025. Investors also have the possibility to convert the bonds into new and/or existing no-par value or­dinary registered shares of the Company. The initial conversion price was set at EUR 12.96, representing a conversion premium of 40 percent above the reference share price of EUR 9.2545.

The Company has agreed not to offer any Shares or equity-linked securities within a period of 90 calendar days after the settlement of the Offering, and not to enter into any transaction having a similar economic effect, subject to customary ex­emptions.

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