gategroup to restructure debt, get new funding
gategroup Holding AG announced today that its shareholders, RRJ Capital and Temasek, and all bank lenders have an agreement in principle to support a comprehensive restructuring of the Group’s financial indebtedness.
The proposed transaction will provide gategroup with significant new liquidity to address short and medium-term needs and will help establish a stable capital structure, said a release from gategoup.
The transaction is supported by gategroup’s shareholders and its bank lenders under a combined facilities agreement. Key features of the proposed transaction are:
- CHF 500 million (US$547.2 million) in new funding provided by shareholders in the form of CHF25 million (US$27.3 million) in equity and a CHF475 million (US$520 million) subordinated, convertible loan upon completion of the transaction;
- CHF 200 million (US$219 million) provided as a senior secured interim liquidity facility extended by shareholders repayable upon completion of the transaction or latest six months after issuance; and
- The extension of the maturity of gategroup’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 finalizing 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 later.
“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,” said gategroup CEO Xavier Rossinyol.
Rossinyol added: “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.”