August 17, 2020
Latham & Watkins LLP advised a consortium of banks on the additional provision of a credit line of €1.2bn for TUI Group by German state-owned development bank KfW. The state de-velopment bank's funds will be used to increase TUI's existing KfW tranche by €1.05bn.
The provision of the additional credit line is dependent on the issue of a convertible bond worth €150m to the Economic Stabilization Fund (Wirtschaftsstabilisierungsfonds – WSF) and an adjustment of the bond by the bondholders due in October 2021. Both conditions and other formal requirements must be fulfilled by September 30, 2020.
Latham also advised the bank consortium on the provision of the first KfW bridge loan for TUI in April this year. This KfW financing was one of the first bridging loans under Special Pro-gramme 855, launched by the German government and KfW in the wake of the corona cri-sis.
TUI is one of the largest tourism companies in the world. The additional KfW bridge loan is the company's response to the unprecedented impact of the COVID 19 pandemic on the group's business.
The team was led by Frankfurt banking and finance partner Sibylle Münch with support of associates Kate Zhu, Ralph Dräger and legal analyst Dilek Bektas.