British Airways owner readying its first bond with a junk rating

IAG has hired four banks to prepare an issue of bonds, its first as a junk-rated borrower since losing its prized investment-grade status in May as the pandemic took hold. The parent company of BA, Iberia and Aer Lingus is seeking funds to strengthen its balance sheet against Covid-19’s impact on international travel, according to a person familiar with the matter. The group appointed Banco Bilbao Vizcaya Argentaria, Goldman Sachs Bank Europe, Morgan Stanley and Banco Santander as joint global coordinators, the person said. IAG and its bankers will meet potential investors on Tuesday and Wednesday to assess demand and a euro-denominated offering of senior unsecured bonds may follow. The sale will include two maturities of debt and will be benchmark-sized, according to the person. That typically means at least E500m. <br/>