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Latham Advises Bank Consortium on Extension of TUI's €2.7 Billion Credit Lines Until 2026

May 26, 2023
German team represents bank consortium in the transaction.

Latham & Watkins has advised the bank consortium on the maturity extension of the €2.7 billion revolving credit facilities (RCF) for travel group TUI by a further two years, until summer 2026.

The syndicated credit line from the 19 banks (€1.65 billion) and the credit line from KfW (€1.05 billion) will now mature in July 2026. The interest conditions of this revolving credit facility (RCF) will be linked to the achievement of the Group's emission reduction targets confirmed by the Science Based Targets Initiative (SBTi).

KfW's credit line, which was reduced to €1.05 billion after the successful capital increase, is not to be drawn further and serves only as a buffer. The aim is to return this credit line by the end of the term.

Latham previously advised the bank consortium on the provision of the two KfW bridge loans for TUI in April and August 2020 and on the maturity extension of the revolving credit facilities (RCF) totaling €4.7 billion in July 2021.

The Latham team was led by Frankfurt finance partner Sibylle Münch, with associates Ralph Dräger and Kate Zhu. Advice was also provided on tax matters by Munich partner Ulf Kieker.