Air France-KLM Group Completes €2.256 Billion Capital Raise

June 14, 2022

Willkie advised Air France-KLM on its rights issue.

On June 14, Willkie client Air France-KLM Group announced the completion of its rights issue that successfully raised €2.256 billion in new capital.

The proceeds from the capital increase will largely be used to repay loans from the French state as part of its aid measures to help the airline through the pandemic, as well as to reduce Air France-KLM’s indebtedness.

The oversubscribed rights issue drew new and existing investors. The French and Dutch states participated to the full extent of their rights and CMA CGM has become a new reference shareholder with a 9.0% stake in Air France-KLM.

Willkie previously advised Air France-KLM on numerous transactions, including its recent €4 billion recapitalization measures, which involved a €1 billion capital increase and a conversion of the €3 billion French state direct loan drawn into perpetual hybrid bonds instrument. The Firm also advised the company in its recent air cargo partnership with CMA CGM.

The Paris team advising Air France-KLM was led by partner Lionel Spizzichino and included partners Gabriel Flandin and Faustine Viala, counsel Maxime de l’Estang, and associate Paul Dumas.