Finnair announces credit notes for cash, mulls new issue

Finnair (AY, Helsinki Vantaa) is considering the issuance of new euro-denominated credit notes, to take place in the near future subject to market conditions. It has also invited holders of outstanding EUR200 million euro (USD240 million) 2.25% notes due in 2022 to tender any or all of their notes for cash. The purchase price is EUR1,010 per EUR 1,000 (USD1,213 per USD1,201) in the principal amount of the notes, while any accrued interest will also be paid, Finnair explained in a statement on May 5. The offer period closes at 1600L (EEST) on May 12. The company said it intended to use the proceeds of the new notes, if they are issued, to fund the purchase of notes in the tender offer and the remaining proceeds for general corporate purposes. If the notes are allocated, their minimum denomination will be EUR1,000 and the minimum subscription amount will be EUR100,000 (EUR120,200). Nordea Bank and OP Corporate Bank are the dealer managers for the tender offer, while Danske Bank and Nordea Bank are the bookrunners for the issue of the new notes. Also on May 5, Finnair revealed in its latest traffic update that it carried only 80,900 passengers in April, 6.3% fewer than in March, due to the ongoing impact of the coronavirus on demand. However, April was “again very strong month for cargo” with 7,923.7 tonnes carried in total during the month, up 309% on April 2020, while cargo capacity (available scheduled cargo tonne kilometres) increased by 1,777% year-on-year.