Aviation services business Swissport is preparing to launch a dividend recap and has mandated banks to run the process. The issuer has appointed Barclays and JPMorgan, two of the sources said. Bank of America is advising alongside, one of the sources added.
The refinancing comprises around €1 billion of drawn debt and €250 million undrawn facilities, sources told Reorg. Proceeds will be used to refinance existing debt and pay a shareholder dividend, the sources said.
The structure of the deal is yet to be determined but is likely to consist of loans, although a bond is also a possibility, sources said.
“Swissport is not the easiest credit considering its history but it has recovered well,” said one of the sources, referencing the group’s ownership by creditors as a result of a debt-for-equity swap.
Creditors took control of Swissport in a debt-for-equity swap in 2020, as
reported. The creditor group included investment funds managed by Strategic Value Partners, Apollo, TowerBrook, Ares, Cross Ocean Partners and King Street Capital Management.
TowerBrook is no longer involved in the business, sources said.
In October 2022, Swissport
said it had completed a €600 million term loan offering and entered into a new €200 million super senior RCF. The term loan will mature in September 2027 and the super senior RCF will mature in March 2027.
Ares, JPMorgan, King Street Capital Management, TowerBrook and Swissport declined to comment. Apollo, Barclays, Bank of America, Cross Ocean and Strategic Value Partners did not respond to requests for comment by the time of publication.