Thomas Cook Group intends to raise at least €300m in aggregate principal amount from the issuance of guaranteed senior unsecured fixed rate notes due 2022 pursuant to an offering to institutional investors.
The Notes will include a call option in favour of the Issuer exercisable after two and a half years, subject to a call schedule with step-downs up to maturity.
The Notes will be guaranteed by Thomas Cook Finance plc and the Issuer's subsidiaries that guarantee Thomas Cook Finance plc's existing notes due 2020 and 2021.
The offering is expected to close on or about 8 December 2016, subject to the satisfaction of various customary closing conditions.
Thomas Cook intends to use the proceeds of the offering to redeem its outstanding guaranteed senior unsecured fixed rate notes due in June 2017, and a portion of its outstanding guaranteed senior unsecured fixed rate notes due in June 2020.
The transaction will strengthen Thomas Cook's financial position by extending the Company's debt maturity profile and increasing liquidity.
The transaction will also help enhance Thomas Cook's future financing flexibility, consistent with the Company's target of reducing fixed-term debt by a further £200m over the next two years.
At 9:53am: (LON:TCG) Thomas Cook Group PLC share price was -0.6p at 79.8p