Carey Olsen Advises On Major Equity-Linked Bond
Channel Islands-based law firm Carey Olsen has recently advised on a EUR450mn transaction for the world’s largest tourism and services group. TUI AG, which also owns Thomson Holidays, successfully raised EUR450mn
(approximately USD663mn) by selling bonds exchangeable for part of its stake
in TUI Travel Plc. The transaction was arranged by Deutsche Bank AG using a Jersey-based issuer,
Nero Finance Limited. Deutsche Bank was advised by partner Alex Ohlsson and
associate Rosie Stott, both from Carey Olsen’s corporate practice group
in Jersey. TUI Travel Plc was formed in 2007 when TUI AG merged its tourism business with
First Choice Holidays Plc. Alex Ohlsson stated that: "Equity-linked bonds enable borrowers to obtain financing
at a lower cost than is the case with conventional notes, in exchange for the
option of converting the bonds to shares. This transaction demonstrates that
Jersey is still active in structured finance transactions despite the recent
turbulence in the market.” .
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