TUI launching convertible bond
TUI AG, parent company of German shipping line Hapag-Lloyd, will today issue unsecured, unsubordinated convertible bonds with an initial aggregate volume of 550 million euros ($739.2 million).
TUI is entitled to increase the aggregate issue size by up to 82.5 million euros ($110.9 million) and it has also granted the banks managing the placement, Citi, Deutsche Bank and Unicredit MIB, a greenshoe option of up to another 82.5 million euros to cover any overallotments. The maximum issue size can therefore amount to 715 million euros ($961.3 million).
Up to 25.07 million ordinary shares of TUI are underlying the bonds at the outset. Depending on today’s development of the share price, the final pricing and the final issue size, the amount of ordinary shares of TUI underlying the bonds at the outset may vary.
TUI intends to list the bonds on the Euro MTF market of the Luxembourg Stock Exchange and will only be offered to institutional investors outside of the United States.
“TUI intends to use the proceeds from the sale of the convertible bonds for general corporate purposes as well as to have the possibility to refinance part of its existing indebtedness,” the company said in a statement.