Air France-KLM announces the successful issuance of new hybrid bonds

Core Viewpoint - Air France-KLM successfully issued €500 million in hybrid bonds, reflecting strong market confidence in the company's strategy and credit profile [1][2]. Group 1: Bond Issuance Details - The hybrid bonds have an annual fixed coupon of 5.75% and a yield of 5.875% until the first reset date [1]. - The bonds are undated, deeply subordinated, and rated BB by Fitch and B+ by S&P, qualifying for 50% equity credit with both agencies [1]. - The issuance was oversubscribed with an order book exceeding €1.75 billion, indicating a 3.5 times oversubscription rate [2]. Group 2: Use of Proceeds - The estimated net proceeds from the hybrid bonds will be utilized for general corporate purposes, including potential refinancing of existing subordinated instruments [3]. - This issuance aims to simplify the company's balance sheet and optimize financing costs while maintaining financial flexibility [3]. - An application will be made for the hybrid bonds to be admitted to trading on Euronext Paris [3].