9th Apr 2021 09:08
(Alliance News) - Tui AG on Friday said it has launched a bond offering worth EUR350 million, bolstering the tour operator's balance sheet as it continues to navigate the Covid-19 pandemic.
Tui shares were 6.1% lower at 372.80 pence each in London on Friday morning, one of the worst mid-cap performers.
The senior unsecured bonds convertible are due in 2028 and the offering may be upsized to EUR400 million, Tui said, and they will be issued with a coupon between 4.50% and 5.00% per year.
They will be convertible into new or existing Tui shares.
"Tui intends to use the proceeds from the offering to further improve its liquidity position as the Covid-19 crisis continues and subsequently for the repayment of existing financing instruments," Tui said.
In January, Tui shareholders voted to allow the German state to take a stake of up to 25% in the company. Prior to that, the European Commission announced that EU competition watchdogs had approved the German state aid of up to EUR1.25 billion for the company.
The state aid package comprises EUR420 million in silent participation, which can be converted into Tui's equity. It also comprises non-convertible silent participation of up to EUR680 million, and EUR150 million of convertible warrant bond.
By Eric Cunha; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
TUI.L