Thomas Cook Group plc has announced that it intends to raise €400,000,000 in aggregate principal amount from the issuance by its wholly owned subsidiary, Thomas Cook Finance 2 plc, of guaranteed senior unsecured fixed rate notes due 2023 pursuant to an offering to institutional investors.
The Notes will include a call option in favour of the Issuer exercisable after two years, subject to a call schedule with step-downs up to maturity. The Notes will be guaranteed by the Company and its subsidiaries that guarantee its existing notes due 2022.
Thomas Cook intends to use the proceeds of the offering to redeem its outstanding guaranteed senior unsecured fixed rate notes due in June 2021.
Following the recent announcement of the enhanced bank facilities, this new bond issuance will further strengthen the Company’s financial position by extending its debt maturity and liquidity profile while maintaining the ability to reduce debt over the medium term.
Taken together, the new bond issuance and bank facilities will improve the Company’s financial flexibility to support its strategy for profitable growth and achieve a more efficient capital structure.