Helaba, LBBW and WestLB Arrange € 600 Million Schuldschein for Deutsche Lufthansa Aktiengesellschaft

Helaba, LBBW and WestLB Arrange € 600 Million Schuldschein for Deutsche Lufthansa Aktiengesellschaft

Acting as Joint Lead Arrangers, Helaba, Landesbank Baden-Württemberg (LBBW) and WestLB AG successfully placed a € 600 million Schuldscheindarlehen for Deutsche Lufthansa Aktiengesellschaft in the euro capital market.

The paper was offered with three-year and five-year maturities (February 2012 and 2014), with the shorter maturity accounting for two thirds of the demand.

The issue was placed with just under 100 investors. More than 35% of the volume was allocated to foreign investors, reflecting Lufthansa’s international presence and stature. The savings banks sector accounted for more than half of the investors. Massive oversubscription meant that the original transaction volume of € 250 million was increased substantially to meet the high demand. Moreover, the margin was fixed at the lower end of the marketing range.

The result of the issue testifies to each Joint Lead Arranger’s individual placement power for Schuldscheindarlehen at home and abroad. In light of the challenging and volatile capital market environment, this is a special achievement which highlights Lufthansa’s good standing in the capital market.

The marketing process included an investor presentation in Frankfurt on January 21, 2009. This presentation served as the anchor event for an investor conference call and was supported by comprehensive credit research to back up the marketing effort.

“The broad placement of the Schuldscheindarlehen continues Lufthansa’s capital market-oriented funding strategy and complements it with another benchmark instrument. Given the currently challenging situation in the financial markets, this success is a highly positive signal for Lufthansa, whereby the choice of lead arrangers was clearly a major success factor,” said Axel Tillmann, Head of Group Finance at Lufthansa.

Comments are closed.