swissport announces plan to refinance certain outstanding debt / preliminary financial results for the second quarter and the first half of 2019

July 29, 2019

Swissport Group S.à r.l. (together with its subsidiaries, “Swissport”) intends to refinance some of Swissport’s outstanding debt. The anticipated proceeds from the refinancing are expected to be used to repay/redeem existing debt. Estimated revenue for the first half of 2019 increased to EUR 1,526.0 million compared to EUR 1,437.9 million in the first half of 2018 (or EUR 1,472.4 million in constant currency).

Swissport Group S.à r.l. (together with its subsidiaries, “Swissport”), an indirect parent company of Swissport International AG, Swissport Financing S.à r.l. and Swissport Investments S.A., intends to refinance some of Swissport’s outstanding debt with new senior credit facilities and new notes. The anticipated proceeds are expected to be used to repay and redeem existing debt and some of Swissport’s currently outstanding notes, respectively.

The refinancing is comprised of a new EUR 75.0 million revolving credit facility, a new EUR 50.0 million delayed draw loan facility, an aggregate principal amount of EUR 1,230.0 million across a new term loan B facility and an offering of new euro-denominated senior secured notes, along with an offering of EUR 280.0 million of new euro-denominated senior notes.

The consummation and actual terms of the refinancing, including the notes offering, are subject to a number of factors, including market conditions, negotiation and execution of definitive documents and satisfaction of customary closing conditions. There can be no assurance that Swissport will enter into the Senior Credit Facilities or complete the Refinancing at all. This communication shall not constitute an offer to sell or a solicitation of an offer to purchase any other loans or securities of Swissport.

Select preliminary financial results for the second quarter and the first half of 2019
The select preliminary financial results for second quarter and the first half ending 30 June 2019 are derived from Swissport’s preliminary management accounts and have not been audited, reviewed or verified by Swissport’s independent auditors. The following information reflects Swissport’s preliminary estimates with respect to some of such results based on the information currently available. Swissport’s operating EBITDA (IFRS 16 Adjusted) presented below means Swissport’s Operating EBITDA calculated on a pre-IFRS 16 basis. Such adjustments are still preliminary and subject to Swissport’s review. Swissport’s Operating EBITDA (IFRS 16 Adjusted) is not a financial measure that Swissport expects to report on a periodic basis.

Swissport’s revenue for the second quarter ending June 30, 2019 increased to EUR 776.5 million compared to EUR 753.7 million for the second quarter 2018 (or EUR 769.3 million on a constant currency basis). This is an increase of 3.0% compared to the same period 2018 (or 0.9% on a constant currency basis). Operating EBITDA (IFRS 16 adjusted) for the period remained roughly stable at EUR 76.2 million compared to EUR 76.4 million for the second quarter 2018 (or EUR 78.0 million on a constant currency basis). Without IFRS 16 adjustments operating EBITDA amounted to EUR 109.9 million for the second quarter of 2019.

Revenue for the first half of 2019 ending 30 June 2019 increased to EUR 1,526.0 million compared to EUR 1,437.9 million for the first half of 2018 (or EUR 1,472.4 million on a constant currency basis). This represents an increase of 6.1% year on year (or 3.6% on a constant currency basis). Swissport’s operating EBITDA (IFRS 16 adjusted) for the six months ending 30 June 2019 increased to EUR 121.9 million compared to EUR 113.7 million for the same period in 2018 (or EUR 116.5 million on a constant currency basis), representing an increase of 7.3% year on year (or 4.6% on a constant currency basis). Without IFRS 16 adjustments operating EBITDA amounted to EUR 191.4 million for the first half of 2019.

The results were driven by organic volume growth, by Swissport’s acquisition of Aerocare in March 2018, as well as a strong de-icing season in the first three months of 2019 and continued growth in the Middle East in the three months ending June 30, 2019. Selected exits from businesses, which had been loss-making for an extended period, contributed to the improved operating EBITDA result, too.

This communication contains inside information by Swissport under Regulation (EU) 596/2014 (16 April 2014) and Implementing Regulation (EU) No 2016/1055 (10 June 2016).