February 27, 2013 / 7:55 AM / 5 years ago

Air Berlin launches 120 mln eur convertible bond

FRANKFURT, Feb 27 (Reuters) - Air Berlin on Wednesday said it was launching a 120 million euro ($157 million) convertible bond with a six year maturity and an annual interest rate of 6 percent.

Germany’s second biggest airline said its major shareholder, Etihad Airways, would subscribe to 29.2 percent of the bond, which can be converted into Air Berlin stock.

The bond is aimed at institutional investors outside the United States, Air Berlin said, adding that proceeds from the sale of the bond would be used to boost the company’s working capital and for general business purposes.

Credit Suisse is the sole lead manager and book runner for the offering, the airline said.

$1 = 0.7649 euros Reporting by Jonathan Gould

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