9th Sep 2020 15:25
(Alliance News) - TUI AG on Wednesday said holders of its senior notes due October 2021 have agreed to suspend potential future limitation of the company's debt.
Under the terms of a revolving credit facility between Anglo-German holiday firm TUI, KfW, and a consortium of banks, a EUR1.2 billion support package is subject to waiver or suspension of a potential future limitation of TUI's debt under the EUR300.0 million 2.125% senior notes due October 2021.
The voting period of a vote without meeting having passed on Tuesday, holders of the senior notes have consented to the suspension.
One effective, this means an increase of the coupon to 9.5% per annum of the nominal amount of the senior notes as of October 1 plus a payment of 2.0% of the nominal amount of the senior notes per quarter starting April 2021.
TUI has committed to an early redemption of the senior notes from "certain additional funds" raised by the company provided the funds raised total a minimum of EUR150 million.
The resolution fee has also increased to EUR3,000 per EUR100,000 nominal amount of senior notes from EUR1,000 per EUR100,000.
Shares in TUI were down 4.2% at 343.00 pence in London on Wednesday afternoon.
By Anna Farley; [email protected]
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