Latham Advises Banks on €1.8bn KfW Financing for TUI

Latham & Watkins LLP advised a consortium of banks on the provision of a credit line of €1.8bn for TUI Group by German state-owned development bank KfW. The state development bank’s funds will be used to increase TUI's existing credit line with its banks amounting to of €1.75bn ("Revolving Credit Facility").

TUI decided to apply for the KfW bridge loan to cushion the effects of the COVID-19 pandemic until normal business operations can be resumed. Following travel restrictions and travel warnings from almost all countries, the group had to suspend its operations in mid-March, including packaged tours, cruises, and hotel operations, until further notice.

The KfW financing is one of the first bridging loans under Special Programme 855, launched by the German government and KfW in the wake of the corona crisis.

The team was led by Frankfurt banking and finance partners Alexandra Hagelüken and Sibylle Münch with support of London finance partner James Chesterman and associates Kim Woggon, Ralph Dräger and Kate Zhu. Restructuring advice was provided by Hamburg partner Frank Grell and on tax matters by Munich counsel Ulf Kieker.