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The management board of TUI AG will offer senior unsecured bonds convertible in an aggregate principal amount of approx €350 million, as the company seeks to patch up its liquidity position.
The company said there will be an option to increase the issuance volume to €400 million. The bonds will be convertible into new and/or existing no-par value ordinary registered shares of TUI.
TUI said it intends to use the proceeds to further improve its liquidity position as the Covid-19 crisis continues and subsequently repay existing financing instruments.
The bonds with a denomination of €100,000 per bond will be issued at 100% of their principal amount. Unless previously converted, redeemed or repurchased and cancelled, the bonds will be redeemed at their principal amount on 16 April 2028.
They will be offered with a coupon between 4.50% and 5.00% per annum, payable semi-annually in arrears. The initial conversion price will be set at a conversion premium between 25% and 30% above the reference share price (being the volume weighted average price (VWAP) of the shares on XETRA between launch and pricing of the offering on 9 April 2021).