TUI Cruises sees successful second bond issuance
Watson Farley & Williams (WFW) advised TUI Cruises on the financial arrangements related to its second bond issuance, including amendments to all its existing ECA-backed and commercial loans required to accommodate this second issuance.
TUI Cruises announced it had priced its offering at €223.5M (US$259.2M) aggregate principle of 6.5% senior notes due in 2026 on 21 October 2021. The notes will be issued at an issue price of 102.25% leading to an implied yield of 5.79%. TUI Cruises will use the proceeds from the offering of the senior notes to repay existing debts.
WWF said the offering, which was oversubscribed, is expected to complete on 28 October 2021.
TUI Cruises is a leading German cruise operator offering cruises through two brands: Mein Schiff, specialising in the premium segment, and luxury and expedition brand Hapag-Lloyd Cruises.
TUI Cruises has a fleet of 12 vessels, with over 19,000 cabins.
The cross-border WFW team advising TUI Cruises was led by London assets and atructured finance partner Lucy Shtenko.
Ms Shtenko said, “We are delighted to have assisted TUI Cruises on this important transaction. It is great to see the continuing strength of the cruise sector and investor confidence through this successful second bond issuance despite the recent challenges the industry has faced. The WFW team was very pleased to again support TUI Cruises across jurisdictions in implementing the financing amendments needed to facilitate this very important second bond issuance for the company”.
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