TUI to issue bonds to pay for CP Ships
TUI AG, parent company of Hapag-Lloyd, plans to issue bonds worth about 1 billion euros ($1.17 billion) to help finance its acquisition of CP Ships.
The bonds will take the form of senior notes and non-dilutive subordinated hybrid securities.
TUI said it will use the proceeds from the issuance to fund the acquisition of the outstanding 11 percent shares of CP Ships, and to refinance certain CP Ships’ and other indebtedness.