Lufthansa rides vaccine tailwinds to follow convertible with senior deal

lufthansa adobe stock 575 375
By Owen Sanderson
23 Nov 2020

German flag carrier Lufthansa mandated a new unsecured bond on Monday, two weeks after it stormed into the convertible market on the back of the rally sparked by positive Covid-19 vaccine trials. The airline might have lost its investment grade ratings, but it is sticking to high grade bond execution norms, prepping a Reg S-only unsecured issue from its EMTN shelf.

Despite the obstacles the pandemic has thrown at the aviation industry, Lufthansa has held up well compared with some of its peers, thanks in part to support from the German government, which took a 20% stake earlier this year.

The airline is rated Ba2/BB-, with both on negative ...

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