TUI has issued a €250 million promissory note — or ‘Schuldschein’ — with tenors of three and five years priced at 180 and 210 basis points, respectively, the company said on July 24, 2025.
The transaction includes both fixed and floating rate tranches with an average tenor of around 3.6 years and a blended coupon of around 4% at current interest rates.
Proceeds 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 flows,” TUI said in a statement.
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 company continued. “The last Schulschein was in 2018, with only €35.2 million still outstanding today, due in 2028.”
Commerzbank, finpair, Helaba und LBBW acted as joint lead arrangers on the 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.