Air France-KLM Group priced its convertible Oceane bond at a nominal annual rate of 2.03% payable annually.
The group launched a €480 million ($620 million) convertible Oceane bond issue last week, which was increased to €550 million.
The 10-year issuance will mature on 15 February 2023, according to the terms of the prospectus. The bond's nominal value was set at €10.30 representing an issue premium of 32.50% over Air France-KLM's reference share price.
During the priority subscription period for shareholders, the company's shareholders subscribed for an amount of approximately €103.1 million, representing approximately 18.7% of the total issue size, including approximately €87.3 million subscribed by the French State corresponding to its current stake in the share capital of Air France-KLM.
BNP Paribas and Société Générale Corporate & Investment Banking are the lead managers and the global coordinators of the transaction. Citigroup, Commerzbank, Deutsche Bank, Goldman Sachs International and Mitsubishi UFJ Securities International are the bookrunners.
Air France will receive up to 60% of the proceeds of the issuance and KLM will receive the remaining sum.
The bonds are being offered through the combination of a private placement today to qualified institutional investors, in France and outside France except in the United States of America, Australia, Canada and Japan. A public offering in France will be held through 22 March.
Settlement and delivery of the bonds are scheduled for 28 March, 2013.