By Angela McDaniels
Tacoma, Wash., Nov. 4 - TUI AG priced €217.79 million of five-year convertible bonds on Wednesday at par with a 5.5% coupon and a 20% initial conversion premium, according to a company news release.
As previously reported, the convertibles are being offered to the company's shareholders during a subscription period that ends on Nov. 11. Shareholders can subscribe for one convertible for each 65 shares held.
Convertibles for which subscription rights have not been exercised were offered on Wednesday to selected qualified investors outside of the United States.
The company had planned to issue up to €250 million of the convertibles with a coupon of 4.5% to 5.5% and set the issue size and the other final terms following completion of the bookbuilding process.
The convertibles have a principal amount of €56.30 each and a conversion price of €5.63.
The conversion price is a 20% premium to the volume-weighted average price of TUI's ordinary shares from the start of trading on Oct. 29 until the end of trading on Oct. 30, which was €4.692.
ABN Amro Bank NV, London Branch, Citigroup Global Markets Ltd., Deutsche Bank AG, Goldman Sachs International and UniCredit Group (Bayerische Hypo- und Vereinsbank AG) are the joint bookrunners.
The settlement date will be Nov. 17, and the bonds will be convertible beginning Jan. 4.
The company plans to list the convertibles on the Frankfurt Stock Exchange.
The proceeds will be used for general corporate purposes.
TUI is an integrated travel company based in Hanover, Germany.
| Issuer: | TUI AG
|
| Issue: | Convertible bonds
|
| Amount: | €217,789,400
|
| Maturity: | Nov. 17, 2014
|
| Bookrunners: | ABN Amro Bank NV, London Branch, Citigroup Global Markets Ltd., Deutsche Bank AG, Goldman Sachs International, UniCredit Group
|
| Coupon: | 5.5%
|
| Price: | Par of €56.30
|
| Yield: | 5.5%
|
| Conversion premium: | 20%
|
| Conversion price: | €5.63
|
| Conversion ratio: | 10
|
| Price talk: | 4.5%-5.5%, up 20%
|
| Pricing date: | Nov. 4
|
| Settlement date: | Nov. 17
|
| Stock symbol: | Xetra: TUI
|
| Reference stock price: | €4.692
|
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