IAG to issue 48m new shares to meet demand from bond holders

27th Aug 2013 11:24

International Airlines Group [IAG] will issue 48.124m new ordinary shares to meet the demand from holders of its 5.8 per cent convertible bonds due in 2014, according to a regulatory filing with the Spanish market regulator [CNMV].On August 16th the company offered to redeem the entirety of the 350m pound issue. As an alternative to the redemption of the debt instruments bondholders have the option under the terms and conditions of the sale to exchange bonds for ordinary shares in the company until the close of business on September 23rd 2013. The new shares will add to the 1,852.37m already existing. It will result in the dilution of all of the company's equity-based per share financial metrics albeit while at the same time reducing its debt load, thus resulting in a small shift in the balance between debt and equity in its capital structure. As of 11:20 AM shares of IAG were moving lower by 3.64% to the 304.3p mark. AB