Swissport reports strong 1H19 results, outlines plans to refinance some of its debt

posted on 29th July 2019 by Justin Burns
Swissport reports strong 1H19 results, outlines plans to refinance some of its debt

Swissport has reported strong preliminary financial results for the first half of 2019 and said results were driven by organic volume growth, the acquisition of Aerocare, a strong de-icing season, a surge in the Middle East and exits from loss-making businesses.

The ground handler’s revenue grew by 6.1 per cent in the first half of 2019 ending 30 June, increasing to €1.52 billion, up on the €1.43 billion for the first half of 2018.

Swissport’s operating EBITDA (earnings before interest, tax, depreciation and amortization) in the six months increased 7.3 per cent to €121.9 million, up on the €113.7 million for the same period in 2018.

Swissport’s revenue for the second quarter ending 30 June, 2019 increased three per cent to €776.5 million compared to €753.7 million for the second quarter 2018. Operating EBITDA for the period remained roughly stable at €76.2 million compared to €76.4 million for the second quarter 2018.

The Swiss headquartered aviation company also revealed plans to refinance some of its outstanding debt with new senior credit facilities and new notes. The anticipated proceeds from the refinancing expected are to be used to repay/redeem existing debt and some of Swissport’s currently outstanding notes.

The refinancing is comprised of a new €75 million revolving credit facility, a new €50 million delayed draw loan facility, an aggregate principal amount of €1.23 billion across a new term loan B facility and an offering of new euro-denominated senior secured notes, along with an offering of €280 million of new euro-denominated senior notes.

Swissport said the consummation and actual terms of the refinancing, including the notes offering, are subject to a number of factors, including market conditions, negotiation and execution of definitive documents and satisfaction of customary closing conditions.

The ground handler added: “There can be no assurance that Swissport will enter into the Senior Credit Facilities or complete the Refinancing at all. This communication shall not constitute an offer to sell or a solicitation of an offer to purchase any other loans or securities of Swissport.”