Air Berlin PLC is today launching a new convertible bond of approximately 120 million euros with a maturity of six years. The bonds, which can be converted into Air Berlin PLC stock, are issued at 100 per cent of nominal value with an annual interest rate of 6 per cent.
Air Berlin intends to use the revenue from the sale of these bonds to boost the company’s working capital and for general business purposes. The offering is aimed at international institutional investors outside the USA. Major shareholder and strategic partner Etihad Airways intends to subscribe to 29.2 per cent of the convertible bond.
Credit Suisse is mandated as sole lead manager and sole bookrunner for the bonds offering.

airberlin is one of Europe’s leading airlines and flies to 150 destinations in 40 countries. The second largest airline in Germany carried more than 33 million passengers in 2012. airberlin offers a global route network through its strategic partnership with Etihad Airways, which has a 29.21 per cent share in airberlin, and through membership of the oneworld® airline alliance. The airline with the award-winning service operates codeshare flights worldwide with 14 airlines. The fleet has an average age of five years and is among the most modern and eco-efficient in Europe.