UK: Travel giant TUI secures £300m credit facility

A branch of First Choice, part of travel group TUI

A branch of First Choice, part of travel group TUI - Credit: PA

Europe’s biggest tour operator TUI Travel today hailed the “continued strong support” of its banks after signing a new £300million credit facility.

The group, which owns brands including Thomson, First Choice and Gulliver Travel, said the three-year deal will improve its flexibility and strength.

Royal Bank of Scotland co-ordinated the debt deal, which involved a syndicate of the company’s banks.

TUI’s chief financial officer Will Waggott 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.”

TUI serves more than 30 million customers in around 31 markets and employs around 54,000 people.

In the financial year to September, the company generated revenues of £14.5billion and an underlying operating profit of £490 million.

Its strong trading comes amid a turnaround battle at rival Thomas Cook where new chief executive Harriet Green is cutting costs by £170 million this year as part of a wider £1.6bn refinancing plan.