XTRA:MTXAerospace & Defense
Should MTU Aero Engines’ Zero‑Coupon 2033 Convertible Refinancing Reshape Dilution Risks for (XTRA:MTX) Investors?
Earlier this week, MTU Aero Engines AG issued new senior unsecured convertible bonds with a principal amount of €600 million, maturing in July 2033, bearing no interest, a 47.5% conversion premium and an accreted redemption price of 105%, to refinance its 2027 convertible bonds and support general corporate purposes.
By using the new zero‑coupon 2033 convertible bonds to repurchase up to €500 million of 2027 bonds, MTU is reshaping its capital structure, extending debt maturities and...