British Airways Amends Trust Deed
27 October 2010 - 5:59PM
Dow Jones News
British Airways PLC (BAY.LN), the flag carrier airline of the
U.K., said Wednesday it has entered into a supplemental trust deed
with International Consolidated Airlines Group S.A., or IAG, BA
Holdco S.A., or BA Holdco, and the Trustee dated Oct. 26 amending
and supplementing the trust deed dated Aug. 13, 2009, between
British Airways and the Trustee.
MAIN FACTS:
-Supplemental Trust Deed will become effective on Jan. 17, 2011,
subject to certain conditions.
-Under the terms of the Supplemental Trust Deed, IAG shall
irrevocably and unconditionally guarantee the company's obligations
under the Trust Deed, the Bonds and the Coupons, including the due
and punctual payment of all amounts expressed to be payable by the
Company under the Trust Deed and the Conditions.
-The Conditions will be replaced in their entirety by new terms
and conditions; Amongst other things, the New Conditions provide
that each Bond will be convertible at the option of the holder into
ordinary shares of EUR0.50 each in the capital of IAG at an initial
conversion price of GBP1.89 per IAG share.
-Shares of British Airways on Tuesday closed at 279.90
pence.
-By Tapan Panchal, Dow Jones Newswires. Tel +44(0)207-842 9448,
tapan.panchal@dowjones.com