IAG says to make early payment of bonds worth 350 mln pounds
MADRID Aug 16 (Reuters) - IAG, the parent of British Airways and Spain's Iberia, said on Friday it would exercise its option to redeem a 350 million pound ($544.5 million) 5.8 percent convertible bond due 2014.
The company intends to pay off the bonds on Sept. 30, though bond holders can opt to convert them to ordinary shares in the airline at a rate of 1.89 pounds per share.
Full conversion to shares would mean the issuance of 184.7 million shares, or 9.96 percent of the group's capital, IAG said.
IAG's share price at 1000 GMT on Friday stood at about 303 pence.