TUI AG clinches 1.8bn euro support package including from German state
TUI Travel
437.60p
16:59 11/12/14
Travel operator TUI AG has clinched a financial support package with a group of investors that included the German government worth €1.8bn.
Travel & Leisure
8,529.51
14:25 08/11/24
The package consists of a capital increase of €500m, alongside a silent participation by Germany's Economic Support Fund of €700m.
Of the latter, €420m will be convertible into the company's shares.
In a statement, TUI said the package would bolster its liquidity in the current "volatile" market environment and see it through the "presumed" travel restrictions until the start of the 2021 summer season.
Berlin will also provide a state guarantee for €400m or, alternatively, boost the non-convertible portion of the ESF's silent participation.
A further €200m will be provided by state lender KfW via a credit facility, while the existing credit facility will be extended through July 2022.
KfW had already extended a €2.85bn credit line and an ESF warrant bond of €150m with option rights for roughly 58.7m shares.
Should the ESF ever convert its silent stake it would obtain not more than a 25% plus one share participation in TUI's equity capital.
As of 1522 GMT, shares of TUI AG were off by 1.02% at 506.2p.