Hapag-Lloyd placed around $700 million of senior notes in the capital market, $200 million more than originally targeted, amid strong investor appetite whetted by the German ocean container carrier's return to profit.
The Hamburg-based carrier also entered into a $360 million syndicated credit line, German travel and tourism group TUI, its largest individual shareholder, announced over the weekend.
The corporate bond will enable Hapag-Lloyd to become more financially independent of TUI which owns 43.3 percent of the world's sixth largest carrier.
Hapag-Lloyd recently announced it had cancelled a $1.6 billion state loan guarantee and would pay back several loans to TUI in a move that clears the way for the tourism company to eventually quit the container shipping business.
The loan guarantee prevented Hapag-Lloyd from making any payments on loans which TUI provided to help the carrier survive the container shipping slump of 2008/2009.
TUI said it expects payments from Hapag-Lloyd of around $88 million on deferred interest as well as a $309 million redemption payment of a bridge loan at the beginning of November.
Hapag-Lloyd also intends to use a portion of its corporate bond to make a repayment of a $292 million loan related to the sale of its minority stake in a Hamburg container terminal in the near future.
TUI said it also issued $136 million of private placements by the end of September with maturities in August 2014.
"The envisaged Hapag-Lloyd repayments and the new private placements enhance TUI's liquidity position," the Hanover-based company said.
TUI agreed in 2008 to sell Hapag-Lloyd to the Hamburg-based Albert Ballin consortium but was forced to retain a larger than planned stake and provide around $3.4 billion of loans to the carrier to prevent the deal collapsing amid the container shipping slump.
Hapag-Lloyd lost around $1 billion in 2009 but posted a record operating profit of $294 million in the second quarter of 2010 compared with a year-earlier loss of $250 million.
The Hamburg-based carrier also entered into a $360 million syndicated credit line, German travel and tourism group TUI, its largest individual shareholder, announced over the weekend.
The corporate bond will enable Hapag-Lloyd to become more financially independent of TUI which owns 43.3 percent of the world's sixth largest carrier.
Hapag-Lloyd recently announced it had cancelled a $1.6 billion state loan guarantee and would pay back several loans to TUI in a move that clears the way for the tourism company to eventually quit the container shipping business.
The loan guarantee prevented Hapag-Lloyd from making any payments on loans which TUI provided to help the carrier survive the container shipping slump of 2008/2009.
TUI said it expects payments from Hapag-Lloyd of around $88 million on deferred interest as well as a $309 million redemption payment of a bridge loan at the beginning of November.
Hapag-Lloyd also intends to use a portion of its corporate bond to make a repayment of a $292 million loan related to the sale of its minority stake in a Hamburg container terminal in the near future.
TUI said it also issued $136 million of private placements by the end of September with maturities in August 2014.
"The envisaged Hapag-Lloyd repayments and the new private placements enhance TUI's liquidity position," the Hanover-based company said.
TUI agreed in 2008 to sell Hapag-Lloyd to the Hamburg-based Albert Ballin consortium but was forced to retain a larger than planned stake and provide around $3.4 billion of loans to the carrier to prevent the deal collapsing amid the container shipping slump.
Hapag-Lloyd lost around $1 billion in 2009 but posted a record operating profit of $294 million in the second quarter of 2010 compared with a year-earlier loss of $250 million.