Lufthansa holders agree to exchange 99.99% of 0.75% exchangeables

By Angela McDaniels

Tacoma, Wash., March 4 – Deutsche Lufthansa AG said that holders had agreed to exchange about €234.38 million, or 99.99%, of the €234.4 million 0.75% exchangeable senior notes due 2017 issued by Lufthansa Malta Blues LP and guaranteed by Lufthansa as of the early participation date, 5 p.m. ET on March 3.

As previously reported, the company began an incentivized payment offer for the ntoes on Feb. 18. The offer will end at 11:59 p.m. ET on March 17. The settlement date will be March 26.

The bonds are exchangeable for shares of JetBlue Airways Corp. common stock. Those who agree to exchange their notes during the offer will receive a cash incentive payment.

The cash incentive payment is €2,500 per €100,000 principal amount of notes for holders who agreed prior to the early participation date and €1,750 per €100,000 principal amount of notes for holders who agree after the early deadline but prior to the offer deadline.

No accrued interest will be paid.

If 90% or more of the issued notes have been exchanged following the offer, Lufthansa will have the right to redeem the remaining notes at par plus accrued interest, the company said.

Morgan Stanley & Co. International plc is the dealer manager. The principal paying, tabulation and exchange agent is the Bank of New York Mellon, London Branch (debtrestructuring@bnymellon.com/convtran@bnymellon.com).

Lufthansa is the flag carrier of Germany, and JetBlue is a low-cost carrier based in Forest Hills, N.Y.

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