27th Jul 2021 15:19
Tui AG - Hanover-based holiday firm - Agrees to extend existing credit lines until summer 2024. Agrees with 19 international banks, and German state-owned investment and development bank KfW, to extend the maturity of revolving credit facilities totalling EUR4.7 billion by two years.
As of Monday, Tui had pro forma liquid funds of about EUR2.9 billion. Notes upcoming covenant tests on September 30 and March 31, 2022, have been suspended.
"This gives the group more time and flexibility and strengthens Tui in a market environment with corona restrictions. The group's objective remains a rapid repayment of the government loans as soon as more holiday destinations can be travelled to in a stable manner again and the successful relaunch of tourism continues in a sustainable manner," the travel agent says.
Notes pent-up demand and interest in travel remain at high levels in Europe and international markets. Says 2021 summer season has started well.
Chief Executive Fritz Joussen says: "Tui is returning to the growth path. We are well positioned with our tour operators, hotel and cruise brands and we will be more efficient and digital after the corona crisis.
"The banks support our strategy, our path of transformation and see Tui's strengths after the corona crisis. We are now financed in the medium term until summer 2024. This creates stability and flexibility as long as corona restrictions still affect the business and markets."
Current stock price: 340.80 pence, up 4.2% Tuesday afternoon
Year-to-date change: up 19%
By Paul McGowan; [email protected]
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