Pareto advises Icelandair Group hf. on its USD 150 million debut on international capital markets

Pareto Securities has advised and acted as Sole Bookrunner to Icelandair Group hf. on its successful placement of five-year senior unsecured bonds in the amount of USD 150 million. The proceeds from the bond issue will be used to partially finance pre-delivery payments for new aircraft, to strengthen the Group’s liquidity, and for general corporate purposes.

The bonds, maturing in 2021, bear interest at a rate of 3 month LIBOR + 3.50 per cent, with no LIBOR floor, and will be listed on NASDAQ Stockholm within 60 days of the issue date.

The issue marks the Group’s debut on international capital markets and makes it the first Icelandic corporate to access the Nordic high yield market since the financial crisis. The margin at which the loan was placed positions the Group as the Nordic airline with the lowest unsecured funding rate, and at the low end of the funding cost spectrum even when compared to international airline peers.  

The transaction was well received by the market, with participation from in particular Sweden, Norway and Continental Europe. Altogether, more than 50 investors participated in the bond issue.      

 

 

For more information please contact Mats Carlsson, +46 8 402 52 86

 

Pareto Securities AB is part of the Pareto Securities group. Pareto Securities is an independent investment bank focused on the Nordic market. Pareto Securities offers Nordic and non-Nordic institutions, companies and private individuals investment services related to trading in stocks, derivatives and fixed income instruments, equity research and advisory services within corporate finance. The Pareto Securities group has a total of more than 400 employees, with its headquarters in Oslo and offices in Sweden (Stockholm and Malmö), Norway, Denmark, Finland, United Kingdom, France, USA, Canada, Singapore and Australia.

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Pareto Securities is an independent full service investment bank with a leading position in the Nordic capital markets and a strong international presence within the energy sector. Pareto Securities AB offers Swedish and foreign institutions, companies and private individuals investment services related to trading in stocks, shares in SPV’s and fixed income instruments, wide coverage both within equity- and credit research. Furthermore, Pareto Securities corporate finance offers ECM, M&A and DCM services as well as arrangement and syndication of new investment projects, arrangement and syndication of sale and leaseback structures within real estate, infrastructure and shipping/offshore. Pareto Securities AB is part of the Pareto Securities group and is headquartered in Oslo, Norway, with more than 400 employees located in offices in Norway, Sweden, Denmark, Finland, United Kingdom, France, Germany, Switzerland, USA, Singapore and Australia.