Swissport has agreed to a comprehensive restructuring with creditors and shareholders including a debt-for-equity swap and a new €500 million long-term debt facility. The restructuring will deliver a significant deleveraging for the company. Swissport has also finalized the €300 million additional interim facility.
Following the announcement on August 21, 2020 of an agreement ‘in principle’, Swissport has now entered into binding agreements on a comprehensive restructuring and refinancing (the Lock-Up Agreement) and on a €300 million super senior interim debt facility.
“Today’s binding agreements secure Swissport’s long-term future. We are pleased that a consensual deal has been reached with a majority of our creditors and our current shareholder,” says Eric Born, Group President & CEO of Swissport International AG. “The restructuring, and the robust financial platform it brings, will enable us to confidently trade through the market recovery and positions Swissport as the first choice partner for airlines around the globe.”
Under the terms of the Lock-Up Agreement, Swissport will shortly be launching an M&A process to run in parallel with other restructuring steps as customary in such situations. Absent any qualifying third-party bid, the senior secured creditors will own substantially all the equity of Swissport, with the seven institutions of the AHG (an ad hoc group of senior secured creditors) controlling more than 75%. The Lock-Up Agreement further provides for a conversion into equity of all existing super senior and senior secured debt, the extinguishment of all senior unsecured and all junior debt at corporate level, as well as the provision of a new €500 million four-year debt facility. The new €500 million facility will refinance the €300 million Interim Facility and will give Swissport the resources to invest into the business, drive operational improvements and to accelerate growth globally. The financial restructuring is expected to be completed in late 2020. (€1.00 = US$1.18 at time of publication.)
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