IAG has proceeded with the repurchase of senior unsecured convertible bonds for an amount of 821.7 million euros, representing 99.6% of the total volume of the offer launched on May 11, which amounted to 825 million euros and had a maturity date of 2028, according to a communication sent to the National Securities Market Commission (CNMV).
Following this acquisition and the corresponding redemption, the outstanding balance to be redeemed is reduced to 3.3 million euros. The company has expressed its intention to exercise its right to redeem in full, not partially, the bonds that remain in circulation, along with accrued and unpaid interest, in accordance with the terms and conditions governing the issuance.
As stated in the document, this operation is part of the series of relevant information communications disseminated on May 11 and 12.
In parallel, IAG set the final conditions on Wednesday for a new issuance of two tranches of senior unsecured bonds, with a combined nominal amount of 1,000 million euros. Both series A and series B were fully subscribed, and their settlement is expected on or around May 28.
The bonds corresponding to series A will offer a fixed annual interest rate of 3.875%, payable in arrears, and will be placed at 99.752% of their nominal value. For their part, the series B notes will provide a yield of 4.5%, also with annual payment in arrears, and will be issued at 99.723% of their nominal value.
The parent company of Iberia, Vueling, and Level has emphasized that, unless there is an early redemption, repurchase, or cancellation, both series will be repaid at 100% of their nominal value on the established maturity date.
In its latest quarterly results, the parent company of Iberia, Vueling, and Level increased its profit by 71% between January and 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.