Swissport agrees comprehensive restructuring

posted on 31st August 2020 by Eddie Saunders
Swissport agrees comprehensive restructuring

Swissport has agreed to a comprehensive restructuring with creditors and shareholders including a debt-for-equity swap and a new 500 million euros long-term debt facility. The restructuring will deliver a significant deleveraging for the company. Swissport has also finalized the 300 million euros additional interim facility.

Highlights

– Lock-up agreement for comprehensive restructuring envisages debt-for-equity swap with approx. 1.9 billion euros of existing debt converted into equity or extinguished and 500 million euros in new long-term facility
– 300 million euros of interim financing gives Swissport ample headroom to trade through COVID-19 crisis
– Senior secured creditors, predominantly US- and UK-investors, to take equity ownership
– The transaction is currently scheduled to complete in late 2020 following customary M&A process
– Swissport aims to leverage its stronger financial position to invest into the business and accelerate growth