The company’s regulatory news flow (RNS) includes a bond launch undertaken on 18 March. The airline issued two series of senior unsecured bonds that totalled €1.2 billion, which was higher than the original expected amount of €1 billion due to high demand.
On 25 March, the company confirmed that all of the bonds had been issued, fully subscribed and settled. It plans to use the proceeds for general corporate purposes. According to the firm, that may include strengthening its balance sheet and increasing its liquidity position, helping it to withstand a prolonged downturn in air travel, as well as offering flexibility to capitalise on a rise in demand for air travel.
Another piece of news concerning IAG shares was released on 23 March. The company signed a Revolving Credit Facility with a syndicate of banks. The total amount available under the facility is $1.755 billion. It will be available for a period of three years plus two one-year extension periods at the discretion of the banks.
The company also cancelled its US dollar facility that was due to expire in June 2021, which had $786 million undrawn and available. Additionally, $400 million of facilities were set to expire undrawn by the end of March 2021.
The net effect of this is that the company’s total liquidity has increased by around $400 million. It now has liquidity of €10.3 billion, which includes €7.8 billion of cash, €1.7 billion of undrawn general facilities and €0.8 billion in committed aircraft financing facilities.
In terms of director deals, there has only been one transaction by a member of senior management in the past month. Non-Executive Director Heather Ann McSharry purchased 55,000 IAG shares at a price of 189.6p on 25 March. The total consideration was just over £104,000.
Over the past month, the IAG share price has fallen by 2%. Over the past year and five years, the stock is up 43% and down 42% respectively. Over the last year and five years, the FTSE 100 index (INDEXFTSE: UKX) has risen by 24% and 9% respectively.
The next results announcement from the company is due on 7 May when it is expected to announce its first quarter results. The airline’s shares are trading at 212p at the time of writing.