Opportunistic Funds Buy Into Swissport Debt; Ares, Carlyle, Capital Four, Investcorp Among Funds in PJT-Latham Senior Secured Group; Prepare New Money/Debt Talks

Relevant Documents:
Full Covenant Report 2024 Notes
Full Covenant Report 2025 Notes

Swissport creditors including Ares, Carlyle, Capital Four, Investcorp and alternative investors have formed a group of senior secured creditors to kick off negotiations with the airport cargo and ground-handling company. The group is evenly distributed across par creditors and opportunistic funds. Over the past weeks distressed investors, including Apollo, have bought into the debt, but not all have joined the group.

The company, which is in need of cash, appointed Houlihan Lokey and White & Case on April 3 to strengthen its financial position in light of the Covid-19 global pandemic and uncertain business environment. The creditor group advised by PJT and Latham & Watkins, is seeking additional information from the company so it can start doing its own review of the situation.

Holders of Swissport’s €250 million unsecured bond are not part of the senior secured group of creditors.

The company’s engagement with advisors follows sponsor HNA’s unwillingness to provide new money, sources told Reorg. While it is still early in the negotiation process, sources said that the opportunistic funds are seeing this as a loan-to-own opportunity with the possibility to deploy capital by providing new money to the cargo and ground-handling company.

Covenant analysis on the senior secured 2024 notes is available HERE on the issuer deal page where you can find analysis, offering memorandums and general information on the notes. The analysis on the 2025s unsecureds is HERE. Coverage of Swissport is HERE.

Debt Explained legal analysts have analyzed the company’s term loan B. Investors private to the group’s SFA can request the analysis from questions@reorg.com.

Swissport’s capital structure is below:
 
--Mario Oliviero, Luca Rossi, Aurelia Seidlhofer