IAG communicated this Thursday that the holders of its senior unsecured convertible bonds, maturing in 2028 and with a coupon of 1.125%, for a total amount of 821.7 million euros, have opted to exercise the conversion of these debt instruments in accordance with the optional redemption offer put forward by the company.
Given this scenario, the airline has exercised its cash alternative option to meet all conversion rights by paying the corresponding amounts, with the final payment expected around August 26. From that date, no bonds will remain in circulation, according to the notification sent to the National Securities Market Commission (CNMV).
As a result, bonds will not be redeemed on July 21, as contemplated in the early redemption announcement published on June 5, since all outstanding bonds have been or will be converted and settled through the payment of the aforementioned amounts.
In its latest quarterly results, the parent company of Iberia, Vueling, and Level increased its profit by 71% in the period from January to March, to 301 million euros, although it revised its forecasts for the whole of 2026 downwards due to the impact of the conflict in the Middle East.
The company plans to present its accounts for the first half of the fiscal year on August 31.