Skip to main content
  • Register
  • Help
  • Contact us

Tui raises up to €400m to strengthen finances

Fri 09 April 2021 07:35 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - Tui is raising up to €400m (£348m) by selling convertible bonds to strengthen its finances during continuing travel restrictions caused by the Covid-19 crisis.

The world's biggest travel company said it would sell €350m of bonds paying between 4.5% and 5% a year with an option to increase the issuance to €400m. The bonds will be redeemed on 16 April 2028.

The initial conversion price will have a premium of between 25% and 30% more than the average price of Tui shares between the launch and pricing of the offer on 9 April.

"Tui intends to use the proceeds from the offering to further improve its liquidity position as the Covid-19 crisis continues and subsequently for the repayment of existing financing instruments," the company said.

Shares of Tui fell 7.1% to 369p at 09:26 GMT.

The Anglo-German tour operator has been hit hard by Covid-19 restrictions, which have crushed the market for foreign holidays. In January it raised €545m from shareholders as part of a €1.8bn financing package agreed with the German government, banks and it biggest shareholder.

In March the company trimmed its capacity for the peak summer months to 75% of 2019 levels from 80% though it said bookings were encouraging and showed strong pent-up demand for travel.

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.


    More company news from ShareCast