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Company News

UPDATE 1-Lufthansa lifts convertible bonds offering to 600 mln eur

(Adds updated conditions)

BERLIN, Nov 10 (Reuters) - In response to high demand from investors, Germany’s Lufthansa on Tuesday increased the volume of a bond offering and adjusted the conditions in its own favour.

Germany’s flagship carrier lifted an offering of 2025 senior unsecured convertible bonds, which it had announced earlier on Tuesday, to up to 600 million euros ($707 million) from 525 million.

The airline, which is reeling from the impact of the coronavirus pandemic on travel, said it planned to use the proceeds for general corporate purposes.

It lowered the coupon to between 2.00% and 2.25% per annum from 2.25% and 2.75%, still payable semi-annually in arrears.

The bonds will be convertible into new and or existing shares and will be offered through an accelerated bookbuilding process to institutional investors.

The initial conversion price was also adjusted to up to 40% above the reference share price from between 30% and 35% earlier.

$1 = 0.8482 euros Reporting by Caroline Copley; Editing by Michelle Adair and Maria Sheahan

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