Ryanair hires banks ahead of planned bond sale
Ryanair is planning its first bond sale after corporate borrowing costs fell to a record low in Europe and the Irish company was awarded credit ratings that make it the highest-ranked carrier in the world.
Europe's biggest airline has hired banks to arrange investor meetings starting on June 3 to market a possible sale of notes in euro, a source said yesterday.
It was graded BBB+ by Fitch Ratings this month, three levels above junk, the same rank awarded by Standard & Poor's in April. Ryanair is refining its low-cost model with customer- friendly enhancements such as allocated seating and an improved website as it seeks to lift passengers numbers by more than one-third to 110 million by 2019.
The airline agreed to buy five more Boeing 737-800s last month, bringing its total order book to 180 jets worth $16bn at current list prices.
"We have our first deliveries coming in September, so we're looking to do a bond," Chief Financial Officer Howard Millar said on May 19, adding that the value would be at least €500m ($681m), with a seven-year term.
BNP Paribas, Citigroup and Deutsche Bank are the banks mandated by Ryanair, according to a source. Citi is acting as global co-ordinator. Ryanair didn't comment.