Air Berlin ascent brings buyers into increased €140m convert

Air Berlin, Germany’s second-largest airline, raised €140m through the issue of an upsized convertible bond on Tuesday, raising what the company sees as deferred equity equivalent to more than half its existing market capitalisation. The new six year bond will pay a coupon of 6%, and will convert at €2.82, a 25% premium to the volume weighted average price during bookbuilding. It was launched with those terms — without the usual coupon and premium ranges — following extensive pre-sounding.