Thomas Cook to raise cash to repay debt
The travel giant has announced plans to issue a new corporate bond to raise at least €300 million (£256 million) to repay older bonds due to mature next June.
Some of the cash raised from institutional investors via the new guaranteed senior unsecured fixed rate notes would also be used to repay part of a bond maturing in 2020, it said.
The offering is expected to close on or about December 8 and Thomas Cook said the transaction would strengthen its financial position by extending its debt maturity profile and increasing liquidity.
The new notes will have a maturity of 2022, but there is an option for Thomas Cook to repay them after two and a half years.
Last week, the travel group announced shareholders would receive the first dividend in five years despite a drop in profits.
A Thomas Cook spokesperson said: "This refinancing of existing bond debt will extend our debt maturity profile and give us further financial flexibility. We remain on track to meet our target to reduce our fixed term debt by £300 million by the end of 2018, building on the £100m we repaid in 2016."
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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