Tui’s shares tumble after it announces plans to raise up to £350m of emergency debt to help it survive pandemic
Tui’s shares tumbled after it announced plans to raise up to £350m of emergency debt to help it survive the pandemic.
The Anglo-German holiday group has already secured multiple bailouts from the government in Berlin to ride out the pandemic.
Hoping for takeoff: Tui is pinning its hopes on a summer pick-up in travel to help repair its balance sheet
It is pinning its hopes on a summer pick-up in travel to help repair its balance sheet. In the meantime, it has tapped the bond markets for more cash to see it through. Shares fell 2.1 per cent.
Tui’s net debt has ballooned to £6.2billion during the pandemic and needs to start repayments in 2022.
It is counting on a summer holiday rebound, but has already lowered capacity for July onwards to 75 per cent of 2019’s level from 80 per cent previously.