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on TUI AG (isin : DE000TUAG000)

TUI AG Announces Convertible Bonds Offering and Tender Offer

TUI AG has announced the issuance of €475 million in convertible bonds, aimed at refinancing efforts and extending the company's maturity profile. Scheduled to mature in 2031, these new bonds will align with TUI's strategy to refinance and repay remaining KfW facilities by mid-2025. The issue, conducted through an accelerated bookbuilding process, excludes shareholders' pre-emptive rights.

The existing bondholders are invited to sell up to €472 million of their current holdings, with new bonds offered at a fixed coupon of 1.95% per annum. The initiative marks the final step in reducing TUI's liabilities while managing interest costs effectively.

This offering also sets the stage for an early redemption of bonds starting August 2029, further enhancing financial flexibility. Settlement for the new bonds is expected around July 26, 2024, with trading anticipated on the Frankfurt Stock Exchange's unregulated Open Market Segment.

R. E.

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