By Sabela Ojea

 

TUI AG said Wednesday that it intends to raise proceeds of around 1.1 billion euros ($1.28 billion) via a discounted share placing to reduce its debt position.

The London-listed company said that it is offering 523.5 million new registered shares at subscription, noting that each share is priced at EUR2.15. The share price represents a discount to theoretical ex-rights price of 35.1%.

TUI also said its largest shareholder, Unifirm Ltd., will exercise all subscription rights attributable to its shareholding at the subscription price and to subscribe directly for new shares.

"The company intends to use the net proceeds of the offering to reduce interest costs and net debt by reducing current drawings," it said, noting that its KfW facility would be reduced by EUR375.0 million to zero. Its current drawings under the cash facility would also be reduced by the remaining net proceeds of EUR724.5 million to EUR762.0 million, the company said.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

 

(END) Dow Jones Newswires

October 06, 2021 01:44 ET (05:44 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
Tui (XE:TUI1)
Historical Stock Chart
Von Dez 2021 bis Jan 2022 Click Here for more Tui Charts.
Tui (XE:TUI1)
Historical Stock Chart
Von Jan 2021 bis Jan 2022 Click Here for more Tui Charts.