Swissport is getting new owners in a debt-for-equity swap that includes a €500m long-term debt facility and a €300m interim facility to help keep it afloat, the airport services company said today.
Senior secured creditors including SVP Global, Apollo Global Management, TowerBrook Capital Partners, Ares Management, Barclays Bank, Cross Ocean Partners and King Street Capital Management will take ownership.
HNA Group, Swissport's debt-strapped Chinese owner until now, "will share in the value creation" contingent on a future exit valuation, Swissport said.
With restructured finances, Swissport managers are now hoping to poach business from rivals made even more vulnerable due to Covid-19's dramatic hit to airport traffic, the company said.
"With much lower debt and €500m additional cash injected, we will be well positioned going forward to invest into the business and accelerate growth," chief financial officer Peter Waller said.
"We expect to see increased outsourcing of ground handling services by airlines and being able to take volumes from some financially weaker competitors," he added.
Even before the new coronavirus lamed airline travel, HNA Group was desperately seeking to sell at a big loss to its $2.8 billion investment in 2016 as it sought to cut debt.
It came under pressure after embarking on an aggressive M&A spree in the US and Europe with deals worth an overall $50 billion.
Swissport employs about 900 people in Ireland and warned in June that it may be forced to make difficult choices soon.
