United Kingdom
United States
Asia Pacific
TUI secures 350m euros to cover debt
TUI AG has secured 350 million euros in financing to cover short term debt.
The travel group has raised the money by issuing bonds that mature in five years, securing it financing in the long term.
TUI says most of the capital raised from issuing bonds will go towards paying debt. A statement read: “The proceeds from the issue will primarily be used to refinance existing indebtedness, thereby extending the company’s debt maturity profile.”
Rival operator MyTravel also issued bonds to secure finance. The travel group’s refinancing plans rested on a recent vote which approved the extension of the bonds, giving the company access to £221.6 million of debt until January 2007.
Operators have faced a challenging summer due to the combined impacts of the war in Iraq, Sars and a hotter-than-average UK summer. Despite this, TUI says figures could be in line with, or better than last year.
The statement read: “…earnings in July and August were good and preliminary results for September are promising. This means, that there is a good chance for third quarter earnings before tax and goodwill amortisation (EBTA) to come close to previous year’s figures. Earnings for the fourth quarter are expected to be better than in the
previous year.”
TUI says bookings for winter 2003/2004 are currently up 4% on last year.
Read our previous stories:
16-Sept-2003 MyTravel secures financial lifeline
Related News Stories:
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Turkish Airlines flight in emergency landing after pilot dies
Boy falls to death on cruise ship
Unexpected wave rocks cruise ship
Storm Lilian travel chaos as bank holiday flights cancelled