TUI AG: Successful issue of convertible bonds of 400 million Euro
- Investors and capital markets support TUI strategy
- Volume increased to 400 million Euro based on strong demand
- Issue ca. 2-times oversubscribed
- Important step towards refinancing
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Hannover, 9-Apr-2021. TUI AG has successfully completed its offering of convertible bonds. The senior unsecured convertible bonds are due in 2028 and have an aggregate principal amount of 400 million Euro. TUI thereby made use of the option to increase the issuance volume from 350 million Euro to 400 million Euro. The Bonds have a denomination of 100,000 Euro per Bond and a coupon of 5.00% per annum, payable semi-annually in arrears. The issue was ca. 2-times oversubscribed.
With the successful offering TUI plans to start the refinancing of loans from the COVID-19 stabilisation packages. Even before the offering TUI had a sufficient liquidity position into the summer 2021. As of 22 March, TUI's liquidity amounted to 1.6 billion Euro.
Fritz Joussen, CEO of TUI Group: "The offering was close to 2-times oversubscribed. The successful completion of our rights issue in January and today's convertible bond offering prove that capital markets and investors remain confident in TUI's strategy and business model and support our journey going forward. They expect a major recovery of the tourism industry and a strong TUI post pandemic - more digital, lean, and efficient. We have laid the foundation: the transformation is ongoing, the digitalization has been accelerated, we expand our digital platforms and the efficiency programme will lower costs by 400 million Euro per annum from 2023 going onward. With the completed offering today, we can plan the first important step towards refinancing our capital structure."
Unless previously converted, redeemed or repurchased and cancelled, the convertible bonds will be redeemed at their principal amount on 16 April 2028. Investors also have the possibility to convert the bonds into new and/or existing no-par value ordinary registered shares of TUI. The initial conversion price was set at 5.3631 Euro, representing a conversion premium of 25% above the reference share price of 4.2905 Euro.
Citigroup Global Markets Europe AG, BofA Securities Europe SA, Commerzbank Aktiengesellschaft and Société Générale are acting as Joint Global Coordinators and Joint Bookrunners for the Offering. Barclays Bank Ireland PLC, Crédit Agricole Corporate and Investment Bank, Deutsche Bank Aktiengesellschaft, HSBC, ING Bank N.V., Landesbank Baden-Württemberg and UniCredit Bank AG are acting as further Joint Bookrunners.
For further information, please contact:
ANALYST & INVESTOR ENQUIRIES
|Mathias Kiep, Mathias Kiep, Group Director Investor Relations,
Controlling & Corporate Finance
|Tel: +44 (0)1293 645 925/
+49 (0)511 566 1425
|Nicola Gehrt, Director, Head of Group Investor Relations
||Tel: +49 (0)511 566 1435
|Contacts for Analysts and Investors in UK, Ireland and Americas
|Hazel Chung, Senior Investor Relations Manager
||Tel: +44 (0)1293 645 823
|Contacts for Analysts and Investors in Continental Europe, Middle East and Asia
|Ina Klose, Senior Investor Relations Manager
||Tel: +49 (0)511 566 1318
|Kuzey Alexander Esener, Head of Media Relations
||Tel: + 49 (0)511 566 6024
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The Bonds are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the EEA or the United Kingdom (the "UK"). For these purposes, a "retail investor" means (a) in the EEA, a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of MIFID II; (ii) a customer within the meaning of Directive (EU) 2016/97 (as amended, the "Insurance Distribution Directive"), where that customer would not qualify as a professional client as defined in point (10) of article 4(1) of MIFID II, and (b) in the UK, a person who is one (or more) of (i) a retail client, within the meaning of Regulation (EU) no 2017/565 as it forms part of UK domestic law by virtue of the EUWA or (ii) a customer within the meaning of the provisions of the Financial Services and Markets Act 2000 of the UK (the "FSMA") and any rules or regulations made under the FSMA to implement Directive (EU) 2016/97, where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of regulation (EU) No 600/2014 as it forms part of UK domestic law by virtue of the EUWA.
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Citigroup Global Markets Europe AG, BofA Securities Europe SA, Commerzbank Aktiengesellschaft, Société Générale, Barclays Bank Ireland PLC, Crédit Agricole Corporate and Investment Bank, Deutsche Bank Aktiengesellschaft, HSBC, ING Bank N.V., Landesbank Baden-Württemberg and UniCredit Bank AG (the "Joint Bookrunners") are acting exclusively for the Company and no-one else in connection with the offering the Bonds (the "Offering"). They will not regard any other person as their respective clients in relation to the Offering and will not be responsible to anyone other than the Company for providing the protections afforded to its clients, nor for providing advice in relation to the Offering, the contents of this announcement or any transaction, arrangement or other matter referred to herein.
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