Cargo ground handler Swissport bagged €300 million of committed interim financing from an ad hoc group of senior secured creditors, which will top-up on its current liquidity position of more than €200 million as of 18 August, a press release confirmed.
Swissport says this will give them ample headroom to trade and execute operational plans through the Covid-19 pandemic as well as take advantage of growth opportunities post–crisis, strengthening its position in the passenger services and air cargo handling business.
In line with this, the company has agreed “in principle” to a comprehensive restructuring and refinancing, which will be led by the ad hoc group, the lenders under its payment-in-kind facility dated 14 August 2019, and parent company HNA Group. The ad hoc group is composed of creditors under Swissport’s €410 million in 5.25–percent senior secured notes due 2024 and credit facility dated 14 August 2019, the company noted.
The comprehensive restructuring will provide €500 million in new long-term debt financing, eventually replacing its €300 million interim facility, with detailed terms to be released upon final documentation.
“This agreement marks a transformational milestone for Swissport. The 300 million euros 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,” said Eric Born, Group President & CEO.
“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,” added Swissport International AG’s CFO, Peter Waller.
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, Swissport added.