Tui starts long road to deleveraging with third bailout

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By Owen Sanderson, Sam Kerr
03 Dec 2020

Travel company Tui announced its third bailout package since March on Wednesday, adding a substantial equity cheque to more state-backed debt, as troubled companies shift their focus from emergency cash to stable capital structures. A sharp rally in the company’s shares helped firm up the rescue package, but some questioned whether the new money will be enough.

The €500m equity raise will be used in part to pay off Tui’s €300m October 2021 bond, its first wholesale debt maturity, meaning the company will not have any maturities until 2022. Unifirm, the investment vehicle of Tui’s largest shareholder, Alexey Mordashov, has agreed to backstop the capital ...

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