ZURICH GLATTBRUGG – gategroup Holding AG announces that its shareholders, RRJ Capital and Temasek, and all bank lenders providing syndicated loans to the Group have reached an agreement in principle, under a binding term sheet, to support a comprehensive restructuring of the Group’s financial indebtedness. The proposed Transaction will provide the Group with significant new liquidity to address short and medium-term needs and will help establish a stable capital structure.
Overview of the Transaction
The Transaction is fully supported by the Group’s shareholders and its bank lenders under a combined facilities agreement. Key features of the proposed Transaction consist of:
- CHF 500m new funding provided by shareholders in the form of CHF 25m in equity and a CHF 475m subordinated, convertible loan upon completion of the Transaction;
- CHF 200m provided as a senior secured interim liquidity facility extended by shareholders repayable upon completion of the Transaction or latest 6 months after issuance; and
- The extension of the maturity of the Group’s syndicated loan facilities to October 2026 and certain other amendments.
The Transaction will be conditional on the extension of the maturity of the Group’s CHF? denominated bond to February 2027, whilst maintaining the cash coupon.
The Transaction is subject to the execution of definitive documentation, customary conditions and regulatory and other approvals. The parties are finalising a lock-up agreement and detailed terms of the Transaction together with information on the process for maturity extension of the bonds will be released in due course.
“This Transaction is a key milestone for the Group. It will position gategroup well for a recovery in the aviation sector and also support the Group’s diversification. The agreement signifies the commitment of our shareholders and lenders to the Group, its management and employees.” says gategroup CEO Xavier Rossinyol.
Rossinyol continues: “The Group will work together with its stakeholders to further improve our cost structure and prepare for the ramping-up of business by our customers.”
Tags: gategroup Holding AG, Temasek
