Swissport, a leader in airport ground services and air cargo handling, said it has received a binding commitment from an ad hoc group of senior secured creditors (AHG), subject to final documentation, for the provision of an interim super senior facility of €300 million ($354 million), which delivers immediate liquidity for Swissport to trade through the Covid-19 market crisis and the restructuring process.  

 

The new funding adds to the more than €200 million liquidity Swissport still had as of August 18.

 

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 (PIK Lenders) and HNA Group, Swissport’s current shareholder. 

 

According to Swissport, the restructuring will position it 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, it added.

 

The AHG represent lenders that own in excess of 75% of Swissport Financing’s €410 million aggregate principal amount of 5.25% Senior Secured Notes due 2024 and Swissport’s credit agreement dated August 14, 2019, such lenders are mainly from the US and the UK. 

 

The PIK Lenders represent 99% of the lenders under Swissport’s PIK facility agreement dated August 14, 2019.

 

Group President & CEO Eric Born said: "This agreement marks a transformational milestone for Swissport. The €300 million 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."

 

"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," stated Born.

 

Chief Financial Officer Peter Waller said: "On completion of the transaction, Swissport will have significantly less leverage. It 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," stated Waller.

 

The comprehensive restructuring will significantly deleverage the balance sheet and provide €500 million in new long-term debt financing, which will eventually replace the €300 million interim facility. 

The restructuring is expected to be completed by the year end, he added.-TradeArabia News Service