Swissport Secures 300 Million Euros Additional Liquidity and Reaches Agreement in Principle On Comprehensive Restructuring

Swissport has received a binding commitment from an ad hoc group of senior secured creditors (the AHG), directed to final documentation, for the necessity of an interim super senior bureau of 300 million euros, which gives immediate liquidity for Swissport to trade within the COVID-19 business crisis and the restructuring process.

The 300 million euros adds to the more than 200 million euros liquidity Swissport still had as of 18 August. Also, an understanding in principle has been selected for a comprehensive restructuring and refinancing of Swissport, including senior defended bankers, led by the AHG, lenders under Swissports PIK facility agreement (the PIK Lenders) and HNA Group Co., Ltd. (HNA), Swissports current shareholder.

The whole restructuring will significantly deleverage the balance sheet and provide 500 million euros in new long-term debt funding, which will eventually replace the 300 million euros interim facility. Full names of the comprehensive restructuring will be published in the due performance once documentation has been finalized.

The restructuring will put Swissport as a reliable global partner for airlines and airports similarly both in the passenger assistance business and in air cargo handling. With enhanced liquidity and low debt levels going forward, Swissport will be able to take benefit of growth possibilities to post COVID-19.

This agreement marks a transformational milestone for Swissport. The 300 million euros of extra interim funding and the proposed restructuring supported by our senior secured creditors and other stakeholders present us the certainty that Swissport will trade strongly within the current market disruptions and emerge as an even a more powerful industry leader, says Eric Born, Group President & customers, our agents and all our other stakeholders that Swissport resumes being the partner they can rely upon.

The agreement also serves an approval from some of the worlds leading investors in the underlying strength of our business. On conclusion of the business, Swissport will have significantly less leverage. The company will have a much more substantial financial position and the means to invest in the business, administer on our operational plans and exploit growth opportunities. Swissport will be very well placed to succeed in the long-term, adds Peter Waller, CFO of Swissport International AG.

The AHG represent lenders that own more than 75% of Swissport Financings 410 million euros aggregate principal amount of 5.25% Senior Secured Notes due 2024 (the SSN) and Swissports credit agreement dated 14 August 2019 (the CA), such lenders are mainly from the US and the UK. The PIK Lenders represent 99% of the lenders under Swissports PIK facility agreement dated 14 August 2019.

The restructuring is anticipated to be completed in late 2020. The agreement in source and the successful completion of the transactions will be subject to the execution of definitive documentation, customary conditions and regulatory and other approvals.