December 04, 2020
Latham & Watkins advises BofA Securities Europe SA, Barclays Bank Ireland PLC, Citigroup Global Markets Europe AG, and Deutsche Bank AG (together, the “Banks”) on their role in connection with a significant financing package of €1.8 billion for TUI.
The financing package includes a capital increase with subscription rights of approximately €500m (“Capital Increase”); a silent participation convertible into shares of TUI by the German Economic Stabilisation Fund (the “WSF”) of €420 million; a non-convertible silent participation by the WSF of €280 million; a state guarantee of €400 million, or, alternatively, a respective increase of the non-convertible silent participation by the WSF; and an additional credit facility from KfW (the German Development Bank) of €200 million, and a prolongation of an existing credit facility by KfW until July 2022. The Banks have agreed, subject to terms and conditions in line with market practice for similar transactions, to underwrite the Capital Increase after take up by other shareholders of their entitlements and by a significant shareholder of TUI.
The financing package is expected by TUI to strengthen its position and provides it with sufficient liquidity reserves in the current volatile market environment.
Latham’s cross-border team was led by London capital markets partner James Inness and Frankfurt capital markets partner Oliver Seiler, with support from capital markets counsel Yoseph Choi and associates Camilla Kehler-Weiss, Sean Meehan, and Isabel Willius. Advice on regulatory matters was provided by London partners Rob Moulton and Nicola Higgs.