IAG proposes sterling bond

International Airlines Group’s wholly owned subsidiary British Airways today (July 9, 2012) announces proposals to issue a sterling secured bond.

The final terms and timing of the issuance will be based on investor feedback and market conditions following an investor roadshow.

Bond holders will have the benefit of security over the shares and assets of a wholly owned subsidiary of British Airways called British Airways (BA) Limited. The assets include up to 31 daily slot pairs at London Heathrow airport.

British Airways (BA) Limited has been established as the licenced operator of scheduled services between London City airport and New York JFK airport. It has entered into a joint operation with British Airways with respect to sales, booking, ticketing and slots at London City and London Heathrow airports.

It is proposed that the bonds will be issued through a special purpose entity incorporated for this purpose.