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Allen & Overy advises global leading tourism group TUI with respect to a financing package of EUR1.8 billion

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Mathews Stephen
Stephen Mathews

Partner

London

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Bloch Michael
Michael Bloch

Partner

London

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Hendrickson Jeff
Jeff Hendrickson

Partner

London

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Schaefer Helge
Dr Helge Schäfer

Partner

Hamburg

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Diekmann Hans
Dr Hans Diekmann

Partner

Duesseldorf

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Wittgens Jonas
Dr Jonas Wittgens

Counsel

Hamburg

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Randall Elizabeth
Elizabeth Randall

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04 December 2020

Allen & Overy has advised global leading tourism company TUI AG, premium listed on the London Stock Exchange and in Germany, with respect to a financing package of EUR1.8 billion. The package has been agreed on with the Economic Support Fund (Wirtschaftsstabilisierungsfonds – WSF), a syndicate of underwriting banks, Kreditanstalt für Wiederaufbau (KfW) and Unifirm Ltd.

Under the TUI Group umbrella a broad portfolio consisting of strong tour operators, 1,600 travel agencies and leading online portals, five airlines with around 150 aircraft, over 400 hotels, 17 cruise liners and many incoming agencies in all major holiday destinations around the globe are gathered.

With the financial package, the Group is securing liquidity for a continuing COVID-19-pandemic in 2021, while at the same time improving TUIs’ balance sheet structures in the long term.

The package includes 5 elements: (i) A capital increase with subscription rights of approx. EUR500 million, (ii) a silent participation convertible into shares of TUI by the WSF of EUR420 million, (iii) a non-convertible silent participation by the WSF of EUR280 million, (iv) a state guarantee of EUR400 million (or, alternatively, a respective increase of the non-convertible silent participation by the WSF) and (v) an additional credit facility by KfW of EUR200 million, and a prolongation of an existing credit facility by KfW until July 2022.

An extraordinary shareholders’ meeting will be held in January 2021 to resolve on the measures as required.

The UK A&O team is led by Stephen Mathews and Michael Bloch and also comprises Lee Noyek, Derrick James, Will Johnson and Natasha Dutton (all Corporate). Jeff Hendrickson and Isidora Parga also advised (both ICM).

The German Allen & Overy team is led by Helge Schäfer, Hans Diekmann and Jonas Wittgens. It also comprises Dorothee Kupiek, Jana Mansen and Jan Fischer (all Corporate/M&A).

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