By Paul A Harris
Portland, Ore., Oct. 19 – TUI AG priced a €300 million issue of 2 1/8% five year senior bullet notes (Ba2/BB-) at 99.415 to yield 2¼% on Wednesday, according to a market source.
The yield printed at the tight end of final yield talk in the 2 3/8% area. Initial guidance was 2½%.
The deal played to €2 billion of demand, the source said.
Commerzbank, Deutsche Bank, HSBC and SG CIB were the bookrunners. Deutsche Bank will bill and deliver.
The Hannover, Germany-based travel and tourism company plans to use the proceeds for general corporate purposes, including the refinancing of €300 million of its 4½% senior notes.
| Issuer: | TUI AG
|
| Amount: | €300 million
|
| Maturity: | Oct. 26, 2021
|
| Securities: | Senior notes
|
| Bookrunners: | Commerzbank, Deutsche Bank (bill and deliver), HSBC, SG CIB
|
| Coupon: | 2 1/8%
|
| Price: | 99.415
|
| Yield: | 2¼%
|
| Spread: | 231.7 bps
|
| Call protection: | Non-callable
|
| Trade date: | Oct. 19
|
| Settlement date: | Oct. 26
|
| Expected ratings: | Moody's: Ba2
|
| S&P: BB-
|
| Distribution: | Regulation S
|
| Price talk: | 2 3/8% area
|
| Marketing: | Quick to market
|
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