HNA's Swissport gets new owners with debt-for-equity deal

Swissport is getting new owners in a debt-for-equity swap that includes a E500m long-term debt facility and a E300m interim facility to help keep it afloat, the airport services company said Monday. Senior secured creditors including SVP Global, Apollo Global Management, TowerBrook Capital Partners, Ares Management, Barclays Bank PLC, Cross Ocean Partners and King Street Capital Management will take ownership. HNA Group, Swissport’s debt-strapped Chinese owner until now, “will share in the value creation” contingent on a future exit valuation, Swissport said. With restructured finances, Swissport managers are now hoping to poach business from rivals made even more vulnerable due to COVID-19’s dramatic hit to airport traffic, the company said. “With much lower debt and 500 million euros additional cash injected, we will be well positioned going forward to invest into the business and accelerate growth,” CFO Peter Waller said. “We expect to see increased outsourcing of ground handling services by airlines and being able to take volumes from some financially weaker competitors.”<br/>