Air France-KLM launches a tender offer to repurchase three series of existing notes subject to the success of a new issue of notes

Editor -

Air France-KLM launches a tender offer to repurchase three series of existing notes subject to the success of a new issue of notes

Roissy (France), 6 January 2020 – Air France-KLM (the “Company”) (Euronext Paris: FR0000031122) announces today the launch of a tender offer to repurchase the following three series of existing notes in cash:

-       €600,000,000 3.875 per cent. Notes due 18 June 2021 (ISIN: FR0011965177) (of which €600,000,000 is currently outstanding) (the “2021 Notes”),
-       €400,000,000 3.750 per cent. Notes due 12 October 2022 (ISIN: FR0013212958) (of which €400,000,000 is currently outstanding) (the “2022 Notes”), and
-       €600,000,000 6.250 per cent. Undated Deeply Subordinated Fixed Rate Resettable Notes Callable in October 2020 (ISIN: FR0012650281) (of which €403,300,000 is currently outstanding) (the “Undated Notes”, and together with the 2021 Notes and the 2022 Notes, the “Existing Notes”) (the “Tender Offer”).

The Tender Offer is conditional upon the settlement of a new issue of senior fixed rate benchmark notes denominated in euros (the “New Notes”) which would be launched concurrently with the Tender Offer and the net  proceeds of which would be used to fund all or part of the Tender Offer and for general corporate purposes.

This transaction is part of the Company’s ongoing dynamic management of its balance sheet structure. The Tender Offer, combined with the new issue of senior notes, will contribute to reduce the overall cost of debt and extend its maturity profile.

The indicative date for the expiration of the Tender Offer is scheduled for 13 January 2020.