Swissport sets €660 million term loan B at Euribor plus 525 bps

By Sara Rosenberg

New York, Dec. 3 – Swissport Group finalized its euro six-year covenant-lite term loan B at a size of €660 million and set pricing at Euribor plus 525 basis points, the high end of the Euribor plus 500 bps to 525 bps talk, according to a market source.

Also, the original issue discount on the term loan B firmed at 98.5, the wide end of the 98.5 to 99 talk, the source said.

The loan still has a 1% floor and 101 soft call protection for six months.

Earlier in syndication, the company eliminated plans for a U.S. six-year covenant-lite term loan B talked at Libor plus 500 bps to 525 bps with a 1% Libor floor, a discount of 98.5 to 99 and 101 soft call protection for six months, and downsized its total term loan financing from CHF 1,145,000,000 at launch.

Barclays and J.P. Morgan Securities LLC are the bookrunners on the deal. JPMorgan had been left lead on the U.S. term loan B.

Proceeds will be used to help fund the acquisition of the company by HNA Group Co. Ltd. from PAI Partners SAS for CHF 2.73 billion and to refinance existing debt.

Other funds for the transaction will come from bonds, which were added to the capital structure when the total term loan amount was reduced, and an equity contribution from HNA.

The €690 million of bonds sold for the transaction are split between a €400 million senior secured tranche and a €290 million senior unsecured tranche.

Closing is expected by year-end, subject to customary regulatory and anti-trust approvals.

Swissport is a Zurich-based provider of ground and cargo handling services to the aviation industry.

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