SG CIB is acting as a Joint-Bookrunner in the GBP 350m 5-year Convertible Bond launched by Tui Travel Plc, the UK-based travel and tourism company.

The transaction was very successful, generating a strong and high quality orderbook. It gathered significant momentum, resulting in over GBP 2bn of demand within an hour and a half which allowed the initial issue size to be increased by GBP 50 million to GBP 350 million. Furthermore, it was priced at the best terms for issuer - the lower end of the indicative coupon spread of 6.00%-6.75% and the higher end of the premium of 28% to 33% based on the share VWAP price between launch and pricing.

The Convertible Bond accompanied Tui Travel's pre-close trading statement, and was part of the company's GBP 490m refinancing package, which included a GBP 140m revolving credit facility, in which SG CIB was also involved.

The proceeds will be used to refinance the c.GBP 900m shareholder loan with TUI AG and to extend Tui Travel's debt maturity profile. In addition, some of the proceeds will go towards the strategic joint-venture which Tui Travel entered into with Sunwing, a Canadian tour operator.