FRANKFURT – Deutsche Lufthansa (ETR:) Aktiengesellschaft has initiated a pre-stabilization period as of today, with J.P. Morgan SE acting as the stabilization coordinator. The airline is offering a new series of subordinated obligations, which are expected to be admitted to the Official List of the Luxembourg Stock Exchange and to be traded on its regulated market.
The securities are described as 30NC6 subordinated obligations, ranking pari passu among themselves, senior to all junior obligations but junior to senior obligations. The offer price and other terms have yet to be confirmed, with the aggregate nominal amount described as benchmark.
The stabilization period, which is subject to relevant regulations, began today and is anticipated to last until no later than February 8, 2025. During this time, J.P. Morgan SE, along with other stabilization managers including Citi, HSBC, Crédit Agricole CIB, Morgan Stanley (NYSE:), Société Générale (EPA:), and Unicredit (BIT:), may over-allot securities up to 5% of the aggregate nominal amount or take actions to support the market price of the securities.
These stabilization actions aim to prevent or reduce any short-term volatility in the price of the securities following their issuance. However, there is no guarantee that stabilization will occur, and if it does, it can be discontinued at any time within the regulatory limits.
The announcement specifies that the offer and stabilization actions are not directed at or intended for individuals in the United States or any jurisdiction where such actions would be unlawful. Furthermore, the securities have not been and will not be registered under the United States Securities Act of 1933 and cannot be offered or sold within the United States absent registration or an applicable exemption from registration requirements.
The information, based on a press release statement, is directed at persons outside the United Kingdom (TADAWUL:) or those within it who have professional experience in investment matters or are high net worth individuals, as defined under the Financial Services and Markets Act 2000.
This move by Deutsche Lufthansa Aktiengesellschaft aligns with common practices in the issuance of securities, where stabilization mechanisms are used to manage market dynamics post-launch.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
