Thomas Cook doubles corporate bond fundraising target

Thomas Cook doubles corporate bond fundraising target

Thomas Cook Group has more than doubled the amount it plans to raise through a corporate bond.

Europe’s second largest travel group said a week ago that it planned to raise a minimum of €300 million from the offering to cut fixed-term debt and enhance its future financing flexibility.

However, Cook announced late on Friday that this has been increased to €750 million.

The amount is being raised by issuing guaranteed senior unsecured fixed rate notes due in 2022 in an offering to institutional investors.

Chief financial officer Michael Healy said: “I am delighted with the strong demand we have seen for our new bond, which has allowed us to increase the size of the issue from the €300 million we had expected, to €750 million.

“By extending maturities with a lower interest cost than our existing bonds, this bond greatly enhances our financial and operational flexibility, and supports the progress we are making towards our financial targets.”

Cook shares closed down 1.5% to 84.71 pence per share on Friday.

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