Thomson owner TUI Travel signs new £300m bank facility

 
City A.M. Reporter
TUI TRAVEL, the world’s largest tour operator, said yesterday it had signed a new £300m bank credit facility with a syndicate of banks.

The travel group, which owns the Thomson and First Choice brands, said the facility would mature in April 2016 and that the covenants remained in line with those provided under its existing banking facilities.

The deal was co-ordinated by the Royal Bank of Scotland, TUI Travel said.

“We are pleased to have agreed this new credit facility which will improve the flexibility and strength within our capital structure and demonstrates the continued strong support for the group from our banks,” said Will Waggott, the FTSE 100-listed firm’s finance chief.

TUI has had a good 2013 so far, with bookings up as rain-soaked Brits rushed to secure their place in the sun during the long winter.

The group said in a March trading update that bookings over the winter rose two per cent by value, with a five per cent increase in average sale prices offsetting a four per cent drop in customer numbers.

Shares in the firm rose by more than two per cent yesterday, to end at 364.9p.