Dufry: convertible bond issue frowned on
(CercleFinance.com) - Dufry announced on Wednesday that it had completed a convertible bond issue for 500 million Swiss francs (about 450 million euros).
The Swiss duty-free operator - which has been hit head on by the coronavirus crisis, as has been the airline industry - said the proceeds from this issue will enable it to strengthen its balance sheet and improve its financial flexibility for a future market recovery.
The senior bonds, due in 2026, are convertible into new or existing shares and will bear a coupon of 0.75%.
In a reaction note published in the morning, analysts at the Swiss investment bank UBS estimated the dilutive effect of the transaction at around 6%.
The market doesn't seem too pleased either - in Zurich, Dufry shares were down about 7% on Wednesday morning.
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The Swiss duty-free operator - which has been hit head on by the coronavirus crisis, as has been the airline industry - said the proceeds from this issue will enable it to strengthen its balance sheet and improve its financial flexibility for a future market recovery.
The senior bonds, due in 2026, are convertible into new or existing shares and will bear a coupon of 0.75%.
In a reaction note published in the morning, analysts at the Swiss investment bank UBS estimated the dilutive effect of the transaction at around 6%.
The market doesn't seem too pleased either - in Zurich, Dufry shares were down about 7% on Wednesday morning.
Copyright (c) 2021 CercleFinance.com. All rights reserved.