Akin Gump advising PIK Lenders on $1.9 billion Swissport restructuring

Akin Gump is advising the payment-in-kind (PIK) loan lenders in relation to the $1.9 billion financial restructuring of Swissport, including a debt-for-equity swap, a new long-term debt facility and an additional interim finance facility.

The binding lock-up agreement for this comprehensive restructuring will implement a debt-for-equity swap, with approximately €1.9 billion of existing debt converted into equity or extinguished, a €500 million new long-term debt facility and a €300 million super senior interim financing to provide Swissport with additional finance to trade through the ongoing COVID-19 crisis.

The transaction is currently scheduled to complete in late 2020, with Swissport intending to leverage its stronger financial position to invest into the business and accelerate growth.

The Akin Gump team advising the PIK lenders is led by London financial restructuring partner James Terry and Frankfurt financial restructuring partner Dr. Christian Halàsz. They are supported by finance partner Amy Kennedy and corporate partner Daniel Walsh in London, senior counsel Dr. Stefan Gehrlein in Frankfurt, and London associates Mitali Ganguly and Emma Richardson.