Watson Farley & Williams (WFW) has advised TUI Cruises on the financial arrangements related to its second bond issuance.
This included amendments to all its existing ECA-backed and commercial loans required in order to accommodate this second issuance.
TUI Cruises announced the pricing of its offering of €223.5 mill aggregate principle amount of 6.500% senior notes, due in 2026 on 21st October, 2021. The Notes will be issued at an issue price of 102.25% leading to an implied yield of 5.79%.
TI Cruises will use the proceeds from the offering to repay existing debt. The offering, which was multiple times oversubscribed, was expected to complete on 28th October, 2021.
TUI Cruises has two complementary brands – Mein Schiff, specialising in the upper-contemporary/premium segment and Hapag-Lloyd Cruises, the only luxury brand in the DACH region operating in both the luxury and expedition segments.
Its fleet of 12 vessels, with over 19,000 berths, is one of the youngest in the world.
The cross-border WFW team advising TUI Cruises was led by London Assets and Structured Finance Partner, Lucy Shtenko, who handled the existing loan amendments with assistance from Associate, Hollie Pickering. Partner, Frederik Lorenzen and Associate, Alexander Piepenbrock in Frankfurt and Partner, Philippe Wolanski and Julie-Anne Thiebaut, in Paris provided additional support.
Shtenko commented: “We are delighted to have assisted TUI Cruises on this important transaction. It is great to see the continuing strength of the cruise sector and investor confidence through this successful second bond issuance, despite the recent challenges the industry has faced.
“The WFW team was very pleased to again support TUI Cruises across jurisdictions in implementing the financing amendments needed to facilitate this very important second bond issuance for the company,” she added.