TUI has successfully issued a €250 million Schuldscheindarlehen (promissory note) with tenors of 3 and 5 years priced at 180 and 210 base points respectively. The transaction includes both fixed and floating rate tranches, with an average tenor of approximately 3.6 years and a blended coupon of c.4% at current interest rates.

Proceeds from the transaction will be used to repay aircraft leases early and take ownership of the assets. This further enhances operational efficiency, improves financing terms and recurring cash flow. The transaction is net debt neutral.

Following the recent return to BB rating territory, TUI is able to participate in the Schuldschein market again. The last Schuldschein issuance was in 2018, with only €32.5 million still outstanding today, due in 2028.

Commerzbank, finpair, Helaba und LBBW acted as Joint-Lead-Arrangers on this transaction. NORD/LB is acting as first lender and paying agent. The international group of investors also includes ICBC, Frankfurt Branch, as a co-manager on the transaction.