Air France-KLM (the “Company”) has successfully placed new bonds today, for a total nominal amount of €650 million with a 5-year maturity and a coupon of 4.625% (the “New Notes”) under its Euro 4,500,000,000 Euro Medium Term Note Programme. The New Notes are expected to be rated BBB- by Fitch and BB+ by S&P. 

Strong investor demand, with an orderbook above €2.8 billion that covered c.4.3x the size of the bonds, is a testament to investors’ confidence in Air France-KLM. 

The Company announced on 13 May 2024 the launch of a tender offer to repurchase the following two series of existing notes in cash:

  • €750,000,000 1.875 per cent notes due 16 January 2025 (ISIN: FR0013477254) (of which €750,000,000 is currently outstanding) (the “2025 Notes”); and
  • €500,000,000 3.875 per cent notes due 1st July 2026 (ISIN: FR0014004AF5) (of which €500,000,000 is currently outstanding) (the “2026 Notes” and, together with the 2025 Notes, the “Existing Notes”).

The proceeds of the New Notes will be used to refinance part of the existing debt of the Company by purchasing all or part of the Existing Notes and for general corporate purpose.

An application will be made for the New Notes to be admitted to trading on Euronext Paris.