By Paul A. Harris
St. Louis, Dec. 2 - TUI AG priced an upsized €1 billion senior notes as well as €300 million of hybrid perpetual notes on Friday, according to a syndicate source.
The company priced €450 million of 5 1/8% seven-year fixed-rate notes (Ba2/BB) at 99.947 to yield 5.2%. The notes came at a spread of 187.5 basis points to mid-swaps, at the tight end of the mid-swaps plus 187.5 bps to 200 bps price talk.
TUI also priced €550 million of five-year floating-rate notes (Ba2/BB) at 99.909. The notes will pay a coupon that will float at three-month Euribor plus 155 bps, inside of the Euribor plus 160 bps to 170 bps price talk.
The combined senior notes sale was upsized from €700 million.
Both tranches of senior notes were sold via Rule 144A, with no registration rights, and Regulation S.
In a Regulation S sale, TUI issued €300 million of 8 5/8% hybrid capital perpetual notes (B1/B+) at par. The notes, which are non-callable for seven years and contain a 200 bps step-up after seven years, priced at the tight end of the 8¾% area price talk.
Citigroup, Deutsche Bank Securities, HVB and The Royal Bank of Scotland were joint bookrunners.
Proceeds will be used to refinance debt incurred in the acquisition of CP Ships, to purchase CP Ships shares and to refinance CP Ships and TUI debt.
TUI is a German tourism company.
| Issuer: | TUI AG
|
| Bookrunners: | Citigroup, Deutsche Bank, HVB, The Royal Bank of Scotland
|
| Trade date: | Dec. 2
|
| Settlement date: | Dec. 9
|
|
|
| Senior fixed-rate notes
|
| Amount: | €450 million
|
| Maturity: | Dec. 10, 2012
|
| Coupon: | 5 1/8%
|
| Price: | 99.947
|
| Yield: | 5.2%
|
| Spread to bunds: | 197.20 bps
|
| Spread to mid-swaps: | 187.5 bps
|
| Call protection: | Non-callable for life
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Mid-swaps plus 187.5 bps to 200 bps
|
|
|
| Senior floating-rate notes
|
| Amount: | €550 million
|
| Maturity: | Dec. 10, 2010
|
| Coupon: | Three-month Euribor plus 155 bps
|
| Price: | 99.909
|
| Discount margin: | 157 bps
|
| Call protection: | Non-callable for life
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Euribor plus 160 bps to 170 bps
|
|
|
| Hybrid capital perpetual notes
|
| Amount: | €300 million
|
| Maturity: | Perpetual
|
| Coupon: | 8 5/8%
|
| Price: | Par
|
| Spread: | 540 bps
|
| Call: | Callable at par in January 2013
|
| Step-up: | 200 bps after January 2013
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Regulation S
|
| Price talk: | 8¾% area
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
