TUI plans €350 million five-year convertibles with concurrent tender of existing notes

By Rebecca Melvin

New York, March 7 - TUI AG launched an offering of €350 million of five-year convertible bonds with subscription rights on Monday, concurrently with cash tender offers for its outstanding 5.125% convertibles due December 2012 and 2.75% bonds due September 2012, according to a news release.

Talked terms on the new Regulation S convertibles were not immediately available, a syndicate source said.

Bank of America Merrill Lynch, Citigroup Global Markets Ltd. and UniCredit Bank AG are acting as joint bookrunners of the deal, with UniCredit acting as subscription agent.

Final terms were expected to be fixed by Friday, and subscription rights for shareholders were to remain in place until March 21, according to the release.

The subscription ratio is expected to be 44:1, with an initial conversion ratio of five.

TUI intends to list the new bonds in the Open Market (Freiverkehr) of the Frankfurt Stock Exchange no later than March 31.

The combined transaction, including the tender, which is expected to end on March 24, will extend TUI's debt maturity profile.

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

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