Swissport to deleverage post EUR 300 million extra liquidity push
Swissport has received a binding commitment of EUR 300 million of interim liquidity from an ad hoc group of senior secured creditors, to support operations through the completion of the restructuring. This delivers immediate liquidity for Swissport to trade through the Covid-19 market crisis and the restructuring process. The EUR 300 million euros adds to the more than EUR 200 million liquidity Swissport still had as of 18 August.
In addition, an agreement ‘in principle’ has been reached for a comprehensive restructuring and refinancing of Swissport, involving senior secured creditors, led by the AHG, lenders under Swissport’s PIK facility agreement and HNA Group, Swissport’s current shareholder. The comprehensive restructuring will significantly deleverage the balance sheet and provide 500 million euros in new long-term debt financing, which will eventually replace the 300 million euros interim facility. Detailed terms of the comprehensive restructuring will be released in due course once documentation has been finalized.
“On completion of the transaction, Swissport will have significantly less leverage. The company will have a much stronger financial position and the resources to invest into the business, execute on our operational plans and exploit growth opportunities. Swissport will be very well positioned to succeed in the long-term,” adds Peter Waller, CFO of Swissport International AG.
The restructuring is expected to be completed in late 2020. The agreement in principle and the successful completion of the transactions will be subject to the execution of definitive documentation, customary conditions and regulatory and other approvals.
The restructuring will position Swissport as a strong global partner for airlines and airports alike – both in the passenger services business and in air cargo handling. With improved liquidity and low debt levels going forward, Swissport will be able to take advantage of growth opportunities post Covid-19.
“This agreement marks a transformational milestone for Swissport. The EUR 300 million of additional interim financing and the planned restructuring supported by our senior secured creditors and other stakeholders gives us the certainty that Swissport will trade successfully through the current market disruptions and emerge as an even stronger industry leader,” says Eric Born, group president and CEO of Swissport International AG. “It signals to our customers, our employees and all our other stakeholders that Swissport continues to be the partner they can rely upon. The agreement also represents an endorsement from some of the world’s leading investors in the fundamental strength of our business.”