Swissport to launch about CHF 1.15 billion equivalent term B this week

By Sara Rosenberg

New York Nov. 9 – Swissport Group is scheduled to hold a bank meeting in New York at 10 a.m. ET on Tuesday and a bank meeting in London at 8:30 a.m. ET on Wednesday to launch a CHF 1,145,000,000 equivalent six-year covenant-lite term loan B that will be split between U.S. dollar and euro tranches, according to a market source.

The sizes of the U.S. and euro tranches are still to be determined.

J.P. Morgan Securities LLC and Barclays are the bookrunners on the deal, with JPMorgan the left lead on the U.S. portion and Barclays the left lead on the euro portion and the administrative agent.

Price talk on the term loan B debt is Libor/Euribor plus 500 basis points to 525 bps with a 1% floor and an original issue discount of 98.5 to 99, the source said.

The debt has 101 soft call protection for six months.

Expected term loan ratings are B1/B, the source added.

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 an equity contribution from HNA.

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

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

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