DGAP-Adhoc

TUI AG reaches agreement with private investors, banks and the German federal government on additional financing package of €1.8 billion

DGAP-Ad-hoc: TUI AG / Key word(s): Financing TUI AG reaches agreement with private investors, banks and the German federal government on additional financing package of €1.8 billion 02-Dec-2020 / 15:39 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. TUI AG reaches agreement with private investors, banks and the German federal government on additional financing package of €1.8 billion, including an approx. € 500 million capital increase with subscription rights and a € 420 million convertible silent participation by the Economic Support Fund

Inside information pursuant to Article 17 MAR

TUI AG has agreed with Unifirm Ltd., a syndicate of underwriting banks, KfW and the Economic Support Fund (Wirtschaftsstabilisierungsfonds - WSF) on a further financing package of € 1.8 billion for TUI.

The package includes

- a capital increase with subscription rights of approx. € 500m;

- a silent participation convertible into shares of TUI by the WSF of € 420m;

- a non-convertible silent participation by the WSF of € 280m;

- a state guarantee of € 400m, or, alternatively, a respective increase of the non-convertible silent participation by the WSF; and

- an additional credit facility by KfW of € 200m, and a prolongation of an existing credit facility by KfW until July 2022.

The financing package strengthens TUI's position and provides it with sufficient liquidity reserves in this volatile market environment. It also balances out the presumed travel restrictions until the beginning of the 2021 summer season. The package became necessary due to the increasing travel restrictions caused by the rising number of infections and the associated more short-term booking behaviour of some customers.