TUI accepts €550.1 million 5.125% notes, 2.75% convertibles in offer

By Angela McDaniels

Tacoma, Wash., March 25 - TUI AG will repurchase about €176.8 million of its 5.125% senior notes due 2012 and about €373.3 million of its 2.75% convertible notes due 2012, according to a company news release.

A tender offer for the notes began March 7 and ended at noon ET on March 24.

For each €1,000 principal of notes, the company will pay €1,033.75 for the 5.125% notes and €995 for the 2.75% convertibles. Accrued interest will also be paid.

The total purchase price for the €550.1 million principal amount of notes is €562.8 million, including accrued interest. The settlement date is expected to be March 29.

The company accepted all tendered 5.125% notes, and a pro-ration factor of 68.4% was applied to the tendered convertibles.

Following these purchases, there will be about €273.2 million of 5.125% notes outstanding and about €320.7 million of 2.75% convertibles outstanding.

The offer is being funded with the €334 million of net proceeds from TUI's offering of convertible bonds due 2016 and €229 million of existing cash.

The company previously planned to spend up to €150 million of cash on the offer, resulting in an expected cap of €485 million.

The dealer managers were Bank of America Merrill Lynch (44 207 995 3715/44 207 995 2324 or john.m.cavanagh@baml.com/tommaso.gros-pietro@baml.com) and Citi (44 207 986 8969 or liabilitymanagement.europe@citi.com). The tender agent is Lucid Issuer Services Ltd. (44 207 704 0880 or tui@lucid-is.com).

TUI is an integrated travel company based in Hanover, Germany.

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