Air Berlin placed its entire convertible bonds offering in just three hours due to strong investor demand, which allowed the carrier to increase the issue size by €20 million ($26 million) to €140 million.
The convertible bonds, which can be converted into Air Berlin ordinary shares, carry an annual interest rate of 6%.
The conversion price will be €2.82.
"We were able to close the order book after only a very short time and place the convertible bonds successfully on the market and even exceeded the issue amount," says Air Berlin's chief financial officer, Ulf Hüttmeyer. "After our success in ending our past financial year with a net profit, the placement of the bonds demonstrates as much more the confidence of institutional investors to our future development and our intensified turnaround programme."
Air Berlin intends to use the proceeds from the sale for working capital and general business purposes. Major shareholder and strategic partner Etihad Airways subscribed to 29.2% of the convertible bonds, or €40.9 million.
Credit Suisse Securities (Europe) was mandated as sole lead manager and sole bookrunner for the bonds with Commerzbank and quirin Bank as co-managers.