BA sets bond offering at £350m

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British Airways has set the size of its convertible bond offering at £350 million ($572 million), following its disclosure today of plans to increase its liquidity.

The airline has set the conversion price of the bonds, due 2014, at £1.89 per share. Settlement will take place around 13 August.

BA says this equates to a premium of 37.6% over its average share price from launch to pricing.

It adds that the net proceeds will be used to ensure the carrier has "strong liquidity consistent with difficult trading conditions".