BA completes the GBP350 milli

RNS Number : 9050V

British Airways PLC

17 July 2009

 



NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, SOUTH AFRICA AND JAPAN OR IN ANY OTHER JURISDICTION IN WHICH OFFERS OR SALES WOULD BE PROHIBITED BY APPLICABLE LAW

British Airways Plc

('British Airways' or the 'Company')

British Airways completes the GBP 350 million offering of 5.8 per cent. Convertible Bonds due 2014

Further to the announcement this morning, British Airways announces that the terms of its GBP 350 million offering (the 'Offering') of senior unsecured convertible bonds due 2014 (the 'Convertible Bonds') have been fixed as follows:

-    the issue size is GBP 350 million;

-    the conversion price has been set at 189 pence per share, which represents a premium of 
     approximately 37.6% over the volume weighted average price of British Airways' ordinary shares from
     launch to pricing; and

-    the coupon has been set at 5.8% per annum payable semi-annually in arrear

Settlement is expected to occur on or around 13 August 2009.

The net proceeds of the Offering will be used to ensure the Company has strong liquidity consistent with difficult trading conditions.

This offering is lead-managed by Barclays Capital, Deutsche Bank AG, London Branch, HSBC Bank plc, Merrill Lynch International and RBS Hoare Govett Limited acting as joint bookrunners and joint lead managers. Calyon, Citigroup Global Markets Limited, Goldman Sachs International, J.P. Morgan and UBS Investment Bank are acting as co-lead managers.

Applications will be made for the Convertible Bonds to be admitted to the Official List of the UK Listing Authority and to be admitted to trading on the Professional Securities Market of the London Stock Exchange.  

Enquiries: 

British Airways Keith Williams George Stinnes	[phone]
Barclays Capital Simon Ollerenshaw	[phone]
Deutsche Bank AG, London Branch Simon Roue	[phone]
HSBC Bank plc Tom Lanners	[phone]
Merrill Lynch International Simon Fraser	[phone]
RBS Hoare Govett Limited Julian Hall	[phone]

This announcement does not constitute or form part of an offer to sell or the solicitation of an offer to subscribe for or otherwise acquire any securities. The securities have not been and will not be registered under the U.S. Securities Act of 1933 and are subject to U.S. tax law requirements. Accordingly, these securities may not be offered, sold or delivered in the United States or to U.S. persons.

Stabilisation/FSA

In connection with the issue of the Convertible Bonds, Merrill Lynch International or any agent of Merrill Lynch International (the 'Stabilising Manager') may effect transactions with a view to supporting the market price of the Convertible Bonds and British Airways' ordinary shares at a level higher than that which might otherwise prevail. However, there is no assurance that the Stabilising Manager (or persons acting on behalf of the Stabilising Manager) will undertake stabilisation action. Such stabilisation, if begun, may be ended at any time, and must be brought to an end after a limited period. Any stabilisation action must be conducted by the Stabilising Manager (or persons acting on behalf of the Stabilising Manager) in accordance with all applicable laws and rules.  

This press release is for information only and does not constitute an offer to sell, subscribe, purchase, exchange or transfer any securities or a solicitation of any such offer. This communication is directed only at persons who (i) are outside the United Kingdom or (ii) have professional experience in matters relating to investments or (iii) are persons falling within Article 49 (2(a) to (d) ('high net worth companies, unincorporated associations etc') of The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (all such persons together being referred to as 'relevant persons'). This communication must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons.

 

END

 

 

MSCGUUMWMUPBGAM