TUI issues $1.5 billion worth of bonds
TUI AG, parent company of Hapag-Lloyd, said Friday it issued 1.3 billion euros ($1.5 billion) worth of bonds. TUI said “strong demand” allowed it to raise the issuance from the planned euros 1 billion euros ($1.2 billion).
The transaction comprised 550 million euros ($646 million) of floating rate senior notes, 450 million euros ($528 million) of fixed rate senior notes and 300 million euros ($352 million) of non-dilutive subordinated hybrid securities.
TUI said it expects to 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.
“We are happy about the high acceptance of the placement of our bonds at the financial markets. Within a short period of time we managed to long-term refinance the whole acquisition of CP Ships,” said Rainer Feuerhake, TUI’s chief financial officer.