TUI expects €485 million cap for 5.125%, 2.75% convertibles tender

By Jennifer Chiou

New York, March 9 - TUI AG announced an estimated €485 million maximum purchase amount in its previously mentioned cash tender offers for its 5.125% convertibles due December 2012 and 2.75% bonds due September 2012.

According to a company news release, the ballpark cap was determined using the roughly €335 million of proceeds from TUI's offering of five-year convertible bonds with subscription rights and existing cash resources of €150 million.

The company said that it may raise the maximum purchase amount.

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% notes. Accrued interest will also be paid.

The offers will end at noon ET on March 24.

Settlement is earmarked for March 29.

The dealer managers are 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 (44 207 704 0880 or tui@lucid-is.com).

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

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