Hanover, 9 September 2020

The holders of the Senior Notes due October 2021 have agreed to suspend potential future limitation of TUI’s financial indebtedness

The additional EUR 1.2bn support package by KfW and the German Economic Stabilization Fund (WSF) that has recently been agreed is subject to a waiver or suspension of a potential future limitation of TUI’s financial indebtedness under the EUR 300,000,000 2.125% Senior Notes due 26 October 2021 (the Senior Notes). TUI AG has therefore requested the holders of its Senior Notes to suspend such potential future limitation by soliciting their consent to an according amendment of the terms and conditions of the Senior Notes to be resolved in a vote without meeting (Abstimmung ohne Versammlung) in the voting period from 4 to 8 September 2020.

Following a countermotion to the resolution item received and published on 1 September 2020 and supported by TUI AG, holders of the Senior Notes have given their consent to amend the terms and conditions of the Senior Notes by voting in favour of the resolution proposal described in the countermotion. The resolution proposal of the countermotion differs from the resolution proposal as outlined in the Consent Solicitation Memorandum dated 17 August 2020 in that the suspension of the potential future limitation of TUI’s financial indebtedness under the terms and conditions of the Senior Notes will only be granted subject to certain conditions as described in detail in the countermotion. These conditions include an increase of the coupon to 9.5% p.a. of the nominal amount of the Senior Notes as of 1 October 2020 and an additional payment of 2.0% of the nominal amount of the Senior Notes per quarter as of 1 April 2021. In addition, according to the adopted resolution, TUI AG commits to an early redemption of the Senior Notes (in full or in part) from certain additional funds raised by TUI AG provided that such funds raised by TUI AG amount to at least EUR 150m.

Further, the resolution fee increases from EUR 1,000 per EUR 100,000 nominal amount of Senior Notes to EUR 3,000 per EUR 100,000 nominal amount of Senior Notes.

The amendment of terms and conditions of the Senior Notes as provided in the adopted resolution is expected to become effective in the course of October 2020.

With the issuance of a convertible bond (alternatively a bond with warrant) by TUI to the Economic Stabilization Fund (WSF) in the amount of EUR 150m, all funds resulting from the EUR 1.2bn support package as announced by means of an ad-hoc dated 12 August 2020 would, upon fulfilment of all further customary conditions for disbursements, then be readily available to TUI.

The minutes of the vote without meeting, including the exact wording of the adopted resolution, as prepared by the scrutineer, can be found on TUI’s website under https://www.tuigroup.com/en-en/investors/bonds-and-ratings/bonds. A list of all creditors entitled to vote, signed by the scrutineer, will be made available to holders of the Senior Notes upon request in accordance with the provisions of the German Act on Debt Securities (Schuldverschreibungsgesetz, SchVG).

ANALYST & INVESTOR ENQUIRIES

Mathias Kiep, Group Director Investor Relations and Corporate Finance

  • Tel: +44 (0)1293 645 925/
  • Tel:+49 (0)511 566 1425    

Nicola Gehrt, Director, Head of Group Investor Relations

  • Tel: +49 (0)511 566 1435

 

Contacts for Analysts and Investors in UK, Ireland and Americas

Hazel Chung, Senior Investor Relations Manager

  • Tel: +44 (0)1293 645 823

Corvin Martens, Senior Investor Relations Manager

  • Tel: +49 (0)170 566 2321

 

Contacts for Analysts and Investors in Continental Europe, Middle East and Asia

Ina Klose, Senior Investor Relations Manager

  • Tel: +49 (0)511 566 1318

 

Media

Kuzey Alexander Esener, Head of Media Relations

  • Tel: + 49 (0)511 566 6024

DISCLAIMER

FORWARD-LOOKING STATEMENTS

This announcement contains a number of statements related to the future development of TUI. These statements are based both on assumptions and estimates. Although we are convinced that these future-related statements are realistic, we cannot guarantee them, for our assumptions involve risks and uncertainties which may give rise to situations in which the actual results differ substantially from the expected ones. The potential reasons for such differences include market fluctuations, the development of world market fluctuations, the development of world market commodity prices, the development of exchange rates or fundamental changes in the economic environment. TUI does not intend or assume any obligation to update any forward-looking statement to reflect events or circumstances after the date of this announcement.

About TUI Group

The TUI Group is the world's leading tourism group and operates worldwide. The Group is headquartered in Germany. The TUI share is listed on the FTSE 250, the leading index of the London Stock Exchange, and on the Regulated Unofficial Market in Germany.

The TUI Group offers integrated services from a single source for its 28 million customers, 21 million of whom are in the European national companies. The entire tourism value chain is represented under one roof. This includes over 400 hotels and resorts with premium brands such as RIU, TUI Blue and Robinson and 15 cruise ships, from the MS Europa and MS Europa 2 in the luxury class and expedition ships to the Mein Schiff fleet of TUI Cruises and cruise ships at Marella Cruises in England. The Group also includes Europe's leading tour operator brands and online marketing platforms, five airlines with more than 100 modern medium and long-haul aircraft and over 1,000 travel agencies. Besides the expansion of its core business with hotels, cruises via successful joint ventures and activities in holiday destinations, TUI is increasingly focusing on the expansion of digital platforms. The Group is transforming itself into a digital company.

Global responsibility for sustainable economic, ecological and social action is at the core of our corporate culture. With projects in 25 countries, the TUI Care Foundation initiated by TUI focuses on the positive effects of tourism, education and training and the strengthening of environmental and social standards. It thus supports the development of holiday destinations. The globally active TUI Care Foundation initiates projects that create new opportunities for the next generation.