IAG's Q2 cash pile boosted by May bond financing

Source: Flightglobal.com
This story is sourced from Flightglobal.com

IAG's second-quarter cash position increased by €718 million ($948 million) from its balance at 31 December 2012, aided by the proceeds of a €390 million convertible bond.

The group ended the quarter to 31 June with €3.6 billion in cash "net of the Vueling consideration and acquisition costs" and the cash balances held by the Spanish carrier.

On 26 April, IAG acquired a further 44.66% of the issued share capital of Vueling for €9.25 per share for a total purchase price of €124 million. IAG now owns 90.51% of the low-cost carrier.

In May, IAG issued a €390 million fixed-rate convertible bond, raising net proceeds of €386 million. The bond holds a coupon rate of 1.75% and is convertible into ordinary shares.

Also, an undrawn, fully committed financing agreement remains in place related to a $927 million EETC bond issue in June 2013, says IAG.

British Airways held €2.1 billion in cash at quarter-end, while Iberia and Vueling had balances of €690 million and €549 million, respectively.