Thomas Cook doubles fund-raising target
Thomas Cook has more than doubled the amount it plans to raise from institutional investors after seeing strong demand for a new corporate bond.
It said last week that it planned to raise at least €300 million to redeem existing bonds due to expire in 2017 and to give it greater financial flexibility.
However, late on Friday it announced that it plans to raise €750 million by issuing guaranteed senior unsecured fixed rate notes, which will have an expiry date of 2022.
The offering is expected to close on or around December 8, and Thomas Cook will use the proceeds to redeem older notes due to mature in June 2017, and a portion of the notes due in June 2020.
The notes due in 2022 will also include an option to Thomas Cook to redeem them after two and a half years.
“I am delighted with the strong demand we have seen for our new bond, which has allowed us to increase the size of the issue from the €300 million we had expected, to €750 million," said chief financial officer Michael Healy.
"By extending maturities with a lower interest cost than our existing bonds, this bond greatly enhances our financial and operational flexibility, and supports the progress we are making towards our financial targets."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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