REG - Intl Con Airline Grp - IAG agrees convertible bond structure withGlobalia

International Consolidated Airlines SAAnnouncement

17/03/2022 15:45

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RNS Number : 1435F  International Cons Airlines Group  17 March 2022

INTERNATIONAL CONSOLIDATED AIRLINES GROUP, S.A.

IAG agrees convertible loan structure with Globalia

International Airlines Group ("IAG") and Globalia have reached an agreement
under which IAG will make a €100 million seven-year unsecured loan to
Globalia. Subject to any relevant regulatory approvals, IAG will have the
option to convert the loan into an up to 20 per cent equity stake in Air
Europa.

Luis Gallego, IAG's chief executive, said:

"We remain convinced about the strategic importance of this deal to the
development and competitiveness of Madrid's hub. Since we started
negotiations, the world has changed. This agreement will give us time to
evaluate with exclusivity alternative structures that may be of interest to
both companies and offer significant benefits for their customers, employees
and shareholders."

The agreement is conditional on Globalia receiving approval from syndicated
banks that provided the loan agreement partially guaranteed by the Instituto
de Crédito Oficial (ICO) and by Sociedad Estatal de Participaciones
Industriales (SEPI).

It provides for a period of exclusivity of one year while discussions take
place and this is accompanied by a right to match any third party offer for
the airline in the next three years, together with a right to exit alongside
Globalia should it sell Air Europa at any time in the future.

IAG Investor Relations

 

17 March 2022

 

 

 

 

LEI: 959800TZHQRUSH1ESL13

This announcement contains inside information and is disclosed in accordance
with the Company's obligations under the Market Abuse Regulation

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