gategroup Sets New Financing Terms to Strengthen Operations
gategroup Announces Strategic New Financing
gategroup Holding AG and its subsidiaries, collectively referred to as "gategroup", have successfully priced new financing options that include a EUR 675 million term loan, a USD 500 million term loan, and a CHF 300 million multicurrency revolving credit facility. This initiative marks a significant step in enhancing the company's financial sustainability and operational capabilities.
Key Features of the New Financing
The New Financing comprises terms that will substantially support gategroup's refinancing strategies. Below are the salient details:
Financing Breakdown
1. **Currency**:
- EUR: 675 million
- USD: 500 million
- Multicurrency: CHF 300 million
Borrower Information
The borrowers in this arrangement include:
- gategroup Finance International S.à.r.l (Luxembourg) for EUR and USD
- gategroup Finance Switzerland GmbH (Switzerland) for the multicurrency line.
Loan Maturities and Margins
The loan agreements entail a maturity period of:
- 7 years for both term loans
- 6.5 years for the revolving credit facility.
As for the margins associated with these loans, they are structured as follows:
- EUR Term Loan: E +425 bps p.a.
- USD Term Loan: S +425 bps p.a.
- Multicurrency Facility: +350 bps p.a.
Purpose Behind the New Financing
gategroup intends to utilize the proceeds to refinance existing obligations, which include:
- Refinancing an existing term loan A of EUR 250 million.
- Refinancing an existing revolving credit facility amounting to EUR 415 million.
- Covering accrued interest and transaction fees.
- Supporting general corporate purposes.
Expected Outcomes
With the New Financing, gategroup anticipates a possible upgrade in its corporate credit rating, expected to reach B2 (stable) / B+ (stable) upon the closing of these financing arrangements. This credit rating improvement is likely to enhance the company's market reputation and offer better conditions for future financing.
Closing Timeline for the New Financing
The completion of this financing is projected to occur within the next few weeks, solidifying gategroup's financial foundation.
Company Overview
gategroup is recognized as a global leader in airline catering and hospitality services. With its headquarters in Zurich, Switzerland, the company is committed to providing exceptional culinary and retail experiences to passengers worldwide. gategroup prides itself on leveraging innovation and advanced technology to ensure operational excellence. Their extensive catering network spans over 200 operating units across more than 60 countries, catering to diverse culinary preferences and requirements.
Contact Information
Media and investor inquiries:
IR@gategroup.com
Contact:
mediacontact@gategroup.com
Frequently Asked Questions
What is the total amount of the New Financing announced by gategroup?
The total amount of the New Financing is composed of EUR 675 million, USD 500 million, and CHF 300 million in multicurrency revolving credit.
What entities are involved in the New Financing?
The entities include gategroup Finance International S.à.r.l (Luxembourg) for the EUR and USD loans and gategroup Finance Switzerland GmbH (Switzerland) for the multicurrency facility.
How does gategroup plan to use the proceeds from this financing?
The proceeds will be used to refinance existing loans, cover accrued interest, and support general corporate purposes.
When does gategroup expect to close the New Financing?
The closing of the New Financing is anticipated to occur within the next few weeks.
What improvements does gategroup expect from this financing?
gategroup expects an upgrade in its corporate credit rating to B2 (stable) / B+ (stable) upon closing.
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