BERLIN/LONDON (Reuters) - Holiday company TUI (DE:TUIGn)
The company said the extra liquidity will help it endure the coming winter season and beyond.
With the new loans, which add to state-backed loans TUI has already received, the company will have cash and available facilities of 2.4 billion euros (2.2 billion pounds), it said in a statement on Wednesday.
The pandemic halted TUI's activities for around three months to June. It had been hoping for a recovery from July but new restrictions brought in by Britain on travel to Spain have meant more holiday cancellations and a further dent to its finances.
TUI, the world's largest tourism group, warned in May that it needed to cut 8,000 jobs and shed 30% of its costs to prepare for a smaller tourism market.
Detailing the aid package, TUI said state-owned lender KfW agreed to increase an existing credit line by 1.05 billion euros in a deal which is subject to the issuance of a convertible bond of 150 million euros to the Economic Stablisation Fund (WSF), and a waiver by bondholders of notes due next year.
It is the second time Germany has stepped in to help TUI, after KfW provided the company with a 1.8 billion euro loan in April. TUI said the additional tranche will be structured as an increase to TUI's existing revolving credit facility.
Shares in the company, which have lost 60% of their value so far this year, traded up 3% to 394 pence in London following the news.