Latham & Watkins Advises Bank Syndicate on TUI Convertible Bond Offering

Latham & Watkins LLP advised the syndicate banks on the offering of senior unsecured convertible bonds of TUI AG excluding the subscription rights of existing shareholders. The convertible bonds have an aggregate principal amount of €400 million (following the exercise of an up-size option by the company) and are due in 2028. The Bonds will be convertible into new and/or existing no-par value ordinary registered shares of TUI.

Citigroup Global Markets Europe AG, BofA Securities Europe SA, Commerzbank Aktiengesellschaft, and Société Générale acted as Joint Global Coordinators and Joint Bookrunners. Barclays Bank Ireland PLC, Crédit Agricole Corporate and Investment Bank, Deutsche Bank Aktiengesellschaft, HSBC, ING Bank N.V., Landesbank Baden-Württemberg, and UniCredit Bank AG acted as further Joint Bookrunners.

TUI intends to use the successfully placed bond in particular to initiate the refinancing of loans from the Covid-19 stabilization packages.

Latham & Watkins previously advised the syndicate banks on TUI AG's capital increase with subscription rights of approximately €500 million in January, which was part of a comprehensive financing package.

Latham’s team was led by Frankfurt capital markets partner Oliver Seiler and associate Camilla Kehler-Weiss, with support from associate Alexandre Maturana.