Wednesday June 25, 08:12 AM
Arcandor to issue 300 mln euro bond convertible into Thomas Cook shares UPDATE
(Updates to add CEO comment, bond maturity, coupon)
FRANKFURT (Thomson Financial) - Arcandor AG (Xetra: 627500 - news) . said
it plans to issue an unsecured bond with an initial volume of 300 million euros, convertible into shares of Thomas Cook Group Plc.
The bond, intended to restructure existing debt and raise funds for possible expansion, will have a maturity of five years and carry a coupon between 7.875 percent and 8.875 percent.
Arcandor has an option to raise its volume by 50 million euros, it said in a statement.
Proceeds from the issue will go toward creating 'more financial leeway for our growth strategy and restructuring of existing loans', it said.
'We are continuously examining markets in our core business with an eye on possible strategic options for consolidation,' chief executive Thomas Middelhoff said in the statement.
'Issuing this bond will help give us the necessary financial flexibility for that.'
The German retailing and tourism giant retains the right to redeem the bond in cash instead of Thomas Cook (LSE: TCG.L - news) shares.
Arcandor holds about 52 percent of shares in the UK-listed tour operator, and the company said it has taken measures to ensure its stake will remain constant after the bond is redeemed.
Arcandor said it may announce the bond's conversion price later today following an accelerated bookbuilding process.
|
Send Article by Email
