Air France KLM : - KLM : -KLM increases the size of its perpetual subordinated bond issue, raising an additional 200 million euros at a yield of 5.5%

This announcement is not an offer of securities in the United States or in any other country. The Bonds may not be offered or sold in the United States unless they are registered or exempt from registration under the U.S. Securities Act of 1933, as amended. Air France-KLM does not intend to register any portion of the proposed offering in the United States or to conduct an offering of securities in the United States.

10 April 2015

Air France-KLM increases the size of its perpetual subordinated bond issue, raising an additional 200 million euros at a yield of 5.5%

Following a very high level of interest, Air France-KLM has increased the size of the perpetual subordinated bond issue realized on 26 March. The order book comprised around 150 investors for a total demand of more than 800 million euros. The strong level of interest allowed for a significant reduction in the actual yield, which will reach 5.5% on the additional 200 million euros. The actual yield for the total issue will thus be 6.08%.

These securities, which have no maturity date, have a first repayment option in October 2020 at the issuer's discretion. They pay an annual coupon of 6.25% until that date. In accordance with IFRS, they are booked as equity.

This issue enables the consolidation of the Group's financial structure during the Perform 2020 implementation period. It will thus contribute to the achievement of the adjusted net debt/EBITDAR ratio target of around 2.5 in 2017.

In view of this additional transaction, the Group is updating its net debt target for end 2015 from around 4.6 billion euros to around 4.4 billion euros.

This additional issue was managed by BNP Paribas, Deutsche Bank AG and Morgan Stanley & Co. International plc acting as Structuring Advisers, Global Coordinators and Bookrunners, by Crédit Agricole Corporate and Investment Bank and Natixis, acting as Global Coordinators and Bookrunners, and by. Banco Santander, S.A., HSBC Bank plc and Société Générale acting as Joint Bookrunners.

Not for distribution directly or indirectly in the United States, Canada, Australia or Japan

Warnings

This press release is for information purposes only and is not an offer to sell securities or a solicitation to buy securities in any jurisdiction. The securities mentioned in this press release were not and will not be offered through a public offering and no related documents will be distributed to the public in any jurisdiction.

The  circulation, publication or distribution of this press release is forbidden in any country where such circulation, publication or distribution would be an infringement of applicable laws and regulations.

This press release cannot be published, distributed or transmitted in the United States (including its territories and dependencies, any State of the United States and the District of Columbia). This press release is not an offer for the sale of the securities of Air France-KLM in the United States or any other jurisdiction. The securities mentioned in this press release may not be offered or sold in the United States of America absent registration or an exemption from registration from the U.S. Securities Act of 1933, as amended (the "Securities Act"). Air France-KLM does not intend to register the offering, in whole or in part, in the United States or to conduct a public offering in the United States.