Hannover, 30 September 2020

TUI Group: Further prerequisite for second stabilisation package of 1.2 billion euros met

  • Economic stabilisation fund subscribes TUI bond with warrant for 150 million euros
  • The additional stabilisation package secures TUI's position in a volatile environment caused by significant COVID restrictions in global travel

The TUI Group has fulfilled another condition for the provision of a second stabilisation package by the German federal government. Following the approval by the holders of the Senior Notes to waive certain bond conditions at the beginning of September, the German Economic Stabilisation Fund (Wirtschaftsstabilisierungsfonds, WSF) has now subscribed to the Group's warrant bond with a volume of 150 million euros as planned. Both conditions had to be fulfilled by 30 September 2020.

With the proceeds from the bond with warrants and the increase in the KfW credit line of 1.05 billion euros, TUI Group will have a further 1.2 billion euros at its disposal. Including this second stabilisation package, TUI will then have financial resources of around 2.0 billion euros1.The package ensures sufficient liquidity to cover the seasonal fluctuations over winter 20/21 and also strengthens the Group's position in the current volatile market environment.

Fritz Joussen, CEO of the TUI Group: "We continue to operate in a very volatile market environment. Travel advice and travel disruptions in our markets and destinations are constantly changing. There are still significant restrictions on worldwide travel through COVID-19 and on our business. This makes planning more difficult and requires enormous flexibility from tour operators. The increased stabilisation package with government loans will above all secure liquidity during the pandemic. We have to bridge this period without any significant turnover and at the same time accelerate the restructuring for the post-COVID-19 period. TUI will become more digital and efficient. In addition, we want to continue to set standards for more sustainability in tourism in the future, even if the current focus has to be on overcoming the crisis."

In March 2020, TUI received the commitment for an initial stabilisation package. The KfW tranche of 1.8 billion euros was used to top up TUI's existing bank revolving credit facility ("RCF"). Two conditions were met for the second stabilisation package: the existing creditors of the bond due in October 2021 waived a possible future limit on financial indebtedness. In addition, TUI is issuing a bond with warrants, which will be subscribed exclusively by the WSF.

WSF subscribes to option bond with a volume of 150 million euros
The bond with a volume of 150 million euros has an initial term of six years and bears interest at 9.5 per cent p.a. After repayment of the KfW second amount of 1.05 billion euros, TUI has an ordinary right of redemption. The bond will be used to issue separable warrants, the full exercise of which would result in a 9 per cent stake in TUI AG at the present time. TUI is thus making use of its existing authorisation to issue a bond with warrants, excluding subscription rights. The conversion price per share was set at the minimum amount of 2.56 euros. The options have a term of 10 years and can be converted into TUI shares at any time.

1) as per September 20, 2020

About TUI Group

The TUI Group is one of the world's leading tourism groups and operates worldwide. The Group is headquartered in Germany. TUI shares are listed in the Prime Standard of the Frankfurt Stock Exchange, in the regulated market of the Lower Saxony Stock Exchange in Hanover and in the FTSE 250, an index of the London Stock Exchange. TUI Group offers its 19 million customers integrated services from a single source and forms the entire tourism value chain under one roof. The Group owns over 400 hotels and resorts with premium brands such as RIU, TUI Blue and Robinson and 16 cruise ships, ranging from the MS Europa and MS Europa 2 in the luxury class and expedition ships in the HANSEATIC class to the Mein Schiff fleet of TUI Cruises and cruise ships operated by Marella Cruises in the UK. The Group also includes Europe's leading tour operator brands and online marketing platforms, for example for hotel-only or flight-only offers, five airlines with more than 130 modern medium- and long-haul aircraft and around 1,200 travel agencies. In addition to expanding its core business with hotels and cruises via successful joint ventures and activities in vacation destinations, TUI is increasingly focusing on the expansion of digital platforms. The Group is transforming itself into a global tourism platform company.

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