4-Oct-2010 10:13 AM

TUI places USD700m senior notes in capital market

TUI Group announced (01-Oct-2010) Hapag-Lloyd placed approximately USD700 million senior notes in the capital market. In response to the strong investor demand, Hapag-Lloyd increased the originally considered note issue volume of USD500 million. In addition, Hapag-Lloyd entered into a syndicated credit line of USD360 million. Beforehand, Hapag-Lloyd had terminated the state loan guarantee and thus the payment restrictions imposed by such guarantee ceased to exist. Therefore, Hapag-Lloyd resumes interest and redemption payments on the financing instruments granted by TUI. TUI meanwhile expects payments from Hapag-Lloyd of around EUR65 million euros on deferred interest as well as the EUR227 million redemption payment of the bridge loan at the beginning of Nov-2010. In addition, Hapag-Lloyd intends to use a portion of the proceeds of the notes to make a repayment of Hybrid III in the near future subject to compliance with certain contractual liquidity requirements and financial ratios. Furthermore, as per end of Sep-2010, TUI has issued EUR100 million of private placements with maturity in Aug-2014. The envisaged Hapag-Lloyd repayments and the new private placements enhance TUI’s liquidity position. [more]

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More