FRANKFURT – Deutsche Lufthansa (ETR:) Aktiengesellschaft has commenced a pre-stabilization period starting today, with J.P. Morgan SE serving as the stabilization coordinator. The airline is set to issue a new series of subordinated obligations, which are expected to be included in the Official List of the Luxembourg Stock Exchange and traded on its regulated market.
The securities are categorized as 30NC6 subordinated obligations, ranking equally among themselves, senior to all junior obligations, but subordinate to senior obligations. The offer price and other specifics are pending confirmation, with the total nominal amount indicated as a EUR benchmark.
This stabilization period, governed by applicable regulations, started today and is projected to continue until at least February 8, 2025. Throughout this period, J.P. Morgan SE, along with other stabilization managers such as Citi, HSBC, Crédit Agricole CIB, Morgan Stanley (NYSE:), Société Générale (EPA:), and Unicredit (BIT:), may over-allot securities by up to 5% of the total nominal amount or undertake actions to bolster the market price of the securities.
These stabilization measures are intended to mitigate or lessen any short-term price fluctuations of the securities following their issuance. However, there is no assurance that stabilization will take place, and if it does, it may be halted at any time within regulatory constraints.
The announcement clarifies that the offer and stabilization efforts are not aimed at individuals in the United States or any jurisdiction where such actions would be illegal. Moreover, the securities have not been, and will not be, registered under the United States Securities Act of 1933 and cannot be offered or sold in the United States without registration or an applicable exemption from registration requirements.
The information, drawn from a press release, is directed at individuals outside the United Kingdom (TADAWUL:) or those within it who have professional investment experience or are classified as high net worth individuals under the Financial Services and Markets Act 2000.
This action by Deutsche Lufthansa Aktiengesellschaft is in line with standard practices for the issuance of securities, where stabilization strategies are utilized to manage market conditions following the launch.
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