Cash "decreases debt"
Air Berlin today (August 20) announced it had raised €125m through convertible bonds.
Germany's second largest airline said part of the inflowing cash would be used to re-purchase existing bonds which have a nominal value of €90m.
The carrier said the remaining €70m would be used to re-finance future airplane purchases and improve its cash flow.
AB said the increased liquidity would reduce its debt by €182m from €779m to €597m.
The airline said the convertible bond had been placed with investors "outside of the US, Canada, Australia and Japan".
It said it was guaranteed by Air Berlin plc and was convertible into Air Berlin plc shares.
Ulf Hüttmeyer, Air Berlin plc's cfo, said: "On the occasion of the presentation of the Annual Financial Statements at the end of March 2009, we announced that Air Berlin was going to improve its balance sheet structure in a sustainable manner.
"We have carried out several transactions, keeping our promise.
"We have succeeded in improving Air Berlin PLC's equity and liquidity, and thus improved the entire financial position of the company."
Air Berlin reported in May a net loss of €88.4m for the first quarter, compared with a Q1 loss of €59.6m in 2008.
It is the latest in a string of carriers which have raised cash to tide them over the current crisis, including BA, Lufthansa and Air France KLM.
www.airberlin.com