TUI AG today will issue unsecured, unsubordinated convertible bonds with an initial aggregate volume of 550 million euros.
The maturity of the Bonds is 5 years and 3 months and the Bonds are expected to pay a coupon of between 2.75 and 3.25 per cent. TUI is entitled to increase the aggregate issue size by up to 82.5 million euros.
In addition, TUI has granted the banks managing the placement, Citi, Deutsche Bank and Unicredit MIB, a greenshoe option of up to 82.5 million euros to cover over-allotments (if any). The maximum issue size can therefore amount to 715 million euros. TUI intends to use the proceeds from the sale of the convertible bonds for general corporate purposes as well as to have the possibility to refinance part of its existing indebtedness.
The coupon, the conversion premium as well as the conversion price will be determined based on today’s bookbuilding process. The conversion price is expected to be set based on the bookbuilding at a premium of between 25 to 30 per cent above the volume weighted average XETRA price of TUI’s ordinary shares during the placement. Up to 25.07 million ordinary shares of TUI are underlying the Bonds at the outset (assuming that the Upsize Option and the greenshoe option are fully exercised). Depending on today’s development of the share price, the final pricing and the final issue size, the amount of ordinary shares of TUI underlying the Bonds at the outset may vary.
The pre-emptive rights of shareholders of TUI AG to subscribe to the Bonds are excluded. TUI intends to list the Bonds on the Euro MTF market of the Luxembourg Stock Exchange. The Bonds will be issued by TUI AG and offered only to institutional investors outside of the US.