Linklaters advises banking consortium on placement of €600 million convertible bond by Lufthansa

Linklaters has advised the banking consortium on the successful placement of convertible bonds by Deutsche Lufthansa AG in the amount of 600 million euros. The bonds have a maturity until 2032 and are convertible into shares of the company.

The bonds will be issued at 100 per cent of their principal amount. Unless previously converted, redeemed or repurchased and cancelled, the bonds will be redeemed on 10 September 2032 at their accreted redemption amount, which was set at 102.66 percent of their principal amount.

In parallel, Linklaters advised the banking consortium on a concurrent tender offer to holders of the outstanding convertible bonds due 2025 issued by the company.

Bookrunners were Barclays Bank Ireland PLC, BofA Securities Europe SA, Goldman Sachs Bank Europe SE, BNP PARIBAS, COMMERZBANK Aktiengesellschaft and UBS AG London Branch.

The company intends to use the proceeds from the offering to finance the tender offer of outstanding convertible bonds and for general corporate purposes including the refinancing of existing debt.

The Linklaters team was led by Alexander Schlee (Partner, Capital Markets, Frankfurt). Other team members were Catrin Retzmann and Tabea Meißner (both Associate, Capital Markets, Frankfurt).

Linklaters regularly advises companies and investment banks on the placement of exchangeable bonds and convertible bonds. Over the past 12 months, the Capital Markets team led by Alexander Schlee advised, among others, LEG Immobilien SE, QIAGEN N.V., TAG Immobilien AG and Vonovia SE on the issuance of convertible bonds as well as the banking syndicate on the placement of convertible bonds by RedCare Pharmacy N.V.