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Might 4 (Reuters) – German cruise line operator TUI Cruises set out plans on Tuesday to launch a 300 million euro ($360.1 million) bond sale, simply as European authorities start to chart a route again in the direction of opening up the journey sector.
TUI Cruises, part-owned by loss-making journey firm TUI , is trying to promote a 300 million euro, five-year bond within the coming days that can fund money on its stability sheet, in line with a lead supervisor memo seen by Reuters.
Each the European Union govt and British authorities have talked up the prospect of easing COVID-19 journey restrictions within the coming weeks, hoping to spice up the stricken tourism business this summer season.,
“With the information coming from the EU yesterday and the U.S. cruises sector in April, this could possibly be good timing for TUI Cruises,” stated a high-yield bond investor who most well-liked to stay unnamed.
The U.S. Facilities for Illness Management and Prevention (CDC) final week introduced new steps to hurry up approvals for the resumption of cruise business passenger operations in the USA by mid-summer.
Preliminary value ideas on the bond, which the issuer can redeem after two years, are within the space of seven%, in line with the memo.
TUI Cruises, which is 50% owned by TUI AG and Royal Caribbean Group every, will maintain a world investor name at 1100 GMT on Tuesday and can be accessible for digital investor conferences via Thursday, the memo stated.
TUI itself was final within the bond market in April, when it issued 400 million euros of convertible bonds.
TUI Cruises has employed JP Morgan and BNP Paribas to steer the sale, alongside Citi, Commerzbank , Credit score Agricole, DZ Financial institution and UniCredit for the sale, in line with the memo.
$1 = 0.8331 euros Reporting by Yoruk Bahceli and Abhinav Ramnarayan; Modifying by Jan Harvey