Thomas Cook earmarks planned note proceeds for loan cancellation, facility refinancing

By Jennifer Chiou

New York, Jan. 14 – Thomas Cook Group plc has announced that it intends to cancel its highest-cost banking facility and facilitate a future refinancing of its facilities maturing in May 2017 using proceeds from about €400 million of guaranteed notes due 2021 issued by Thomas Cook Finance plc.

According to a filing with the London Stock Exchange, the company plans to cancel its banking facility that was arranged in May 2013. It had an original amount of €224 million and has since been reduced to €164 million.

Proceeds will also be used to help move Thomas Cook to normalization under its existing banking facilities, thereby improving its ability to resume dividend payments, the filing noted.

The company also said that the proceeds would strengthen its financial position by extending and rebalancing its debt maturity profile and increasing liquidity, especially with the forthcoming redemption of its €400 million of 6¾% guaranteed notes due 2015.

Thomas Cook is a London-based travel company.

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