Gide has advised Air France-KLM on its capital increase with preferential subscription rights of approximately EUR 2.256 billion.
As announced on the publication of its annual results on 17 February 2022, the Company wishes to be relieved from the constraints of the European Commission's Temporary Framework and will allocate approximately EUR 1.7 billion from the capital increase to the repayment of the "Covid-19 recapitalisation aid", in particular through the repayment of the deeply subordinated bonds held by the French State. The remainder will be allocated to reduce the Company’s net indebtedness.
This transaction is in line with the EUR 1.036 billion rights issue with a priority subscription period of April 2021, which initiated the restoration of Air France KLM's equity capital and for which Gide acted as advisor to the banking syndicate.
The banking syndicate comprised Deutsche Bank Aktiengesellschaft, HSBC Continental Europe, Natixis, Crédit Agricole Corporate and Investment Bank and Société Générale as Global Coordinators.
The Gide team was led by partner Arnaud Duhamel, working with associates Aude-Laurène Dourdain, Mariléna Gryparis and Emilie Radisson on aspects of French law; partner Melinda Arsouze and associate Scott Logan on aspects of US law; and partner Didier Martin and associate Abel Colomb on aspects of M&A/Corporate.
Air France-KLM was also advised by Willkie Farr & Gallagher LLP Paris.
The banking syndicate was advised by Allen & Overy.