Hapag-Lloyd to add to bond issue

Hapag-Lloyd to add to bond issue    German container line Hapag-Lloyd said Monday it will issue an additional 150 million euros ($210 million) worth of bonds follow a successful $700 million issue on Oct. 8.
   The carrier said the new tranche of debt will be issued at 9 percent and is due in 2015.
   'Due to strong investor demand for the Hapag-Lloyd issuance of approximately $700 million (equivalent) senior notes on Oct. 8, Hapag-Lloyd today placed additional senior notes in the amount of approximately 150 million euros in the capital market,' said a note from European tourism giant TUI, the line's largest single shareholder. 'Against the background of the enhanced liquidity position of Hapag-Lloyd, TUI AG now expects a repayment in full of the Hybrid III (TUI portion 215 million euros, or $301 million) by the end of the year 2010 subject to compliance with certain contractual liquidity requirements and financial ratios at Hapag-Lloyd.'
   TUI offered Hapag-Lloyd a bridge loan in 2009 to help it cover day-to-day costs during the depths of the economic crisis. The German line also negotiated a nearly $2 billion loan guarantee from the German government. But it has recovered rapidly in 2010, posting record first-half profits. Hapag-Lloyd is the world's fifth-largest carrier, according to maritime consultant Alphaliner.