Airberlin has successfully implemented its previously announced recapitalization program, through the issuing of new bonds alongside the 300 million euros convertible perpetual bond placed to Etihad Airways. As such, the recapitalization in the amount of 550 million euros will strengthen its equity capital and liquidity position for the long term.
Through two new bonds; one in euros and the other in Swiss francs, airberlin has raised a total of 252 million euros. The holders of the currently outstanding corporate bonds due in 2014 and 2015 have accepted the offer of exchanging their notes to a total sum of 12.63 million euros. The difference to the 252 million euros is the cash inflow to airberlin. Airberlin will use the net proceeds for general corporate purposes for a maximum amount of 150 million euros and the refinancing of existing commitments. The euro bond, amounting to 170 million euros, has an annual interest rate of 6.75%. The Swiss Franc bond in the amount of 100 million Swiss francs has an annual interest rate of 5.625%.
Airberlin’s Chief Financial Officer, Ulf Hüttmeyer said: “This recapitalization exercise has allowed us to significantly strengthen our equity capital and airberlin’s levels of liquidity. At the same time we are reducing our net debt and have lower interest payments to make. Even though we did not reach the envisaged 100 million euros for the exchange, we undertake to use that part of the cash proceeds which are significantly higher than expected to purchase the outstanding bonds in the envisaged amount on the market at a satisfactory price if the market opportunity arises.”
Airberlin is one of the leading airlines in Europe and flies to 147 destinations worldwide. The second largest airline in Germany carried more than 31.5 million passengers in 2013. Airberlin offers a global route network through its strategic partnership with Etihad Airways, which has a 29.21% share in airberlin, and through membership of the oneworld® airline alliance. The airline with the award-winning service operates codeshare flights worldwide with 16 airlines. The fleet has an average age of five years and is among the most modern and eco-efficient in Europe.
