Ad hoc announcement pursuant to Art. 53 of the SIX Swiss Exchange Listing Rules
gategroup Holding AG and its subsidiaries (together “gategroup“) are announcing that they have priced a EUR 675 million term loan, a USD 500 million term loan and a multicurrency revolving credit facility in an amount of CHF 300 million (the “New Financing”).
The key terms of the New Financing are as follows:
| Currency | EUR | USD | Multicurrency |
| Amount | 675 million | 500 million | CHF 300 million |
| Borrower(s) | gategroup Finance International S.à.r.l (Luxembourg) | gategroup Finance International S.à.r.l (Luxembourg) and gategroup US Finance, Inc. (USA) | gategroup Finance Switzerland GmbH (Switzerland) |
| Maturity | 7 years | 7 years | 6.5 years |
| Opening Margin | E +425 bps p.a. | S +425 bps p.a. | +350 bps p.a. |
| Issue Price | 99.5 | 99.5 | 100.0 |
| Guarantees / Security | The New Financing will be guaranteed and secured by material group companies – security consisting of security over shares of certain material group companies, security over certain structural intercompany loans, certain material operating bank accounts and with respect to obligors incorporated in the United States of America a customary all personal asset security. | ||
gategroup intends to use the proceeds to refinance certain existing loans of the group, including a refinancing of the existing term loan A in the amount of EUR 250 million and the existing revolving credit facility in the amount of EUR 415 million, as well as certain other loans, pay accrued interest, transaction fees and for general corporate purposes.
As a result of the New Financing, gategroup expects an upgrade of its corporate credit rating to B2 (stable) / B+ (stable) upon closing.
Closing of the New Financing is expected within coming weeks.
Media and investor inquiries:
IR@gategroup.com
Contact:
mediacontact@gategroup.com
About gategroup
gategroup is the global leader in airline catering, retail-on-board and hospitality products and services. gategroup provides passengers with superior culinary and retail experiences, leveraging innovation and advanced technology solutions. Headquartered in Zurich, Switzerland, gategroup delivers operational excellence through the most extensive catering network in the aviation industry, serving passengers from over 200 operating units in over 60 countries/territories across all continents. For further information, please visit www.gategroup.com.
Forward-looking information
Matters discussed in this announcement may constitute forward-looking statements, including statements relating to the New Financing, including the intended use of proceeds therefrom. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “aims”, “expect”, “anticipate”, “intends”, “estimate”, “will”, “may”, “continue”, “should” and similar expressions. The forward-looking statements in this release are subject to risks, uncertainties, contingencies and other important factors that could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. Forward-looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. gategroup expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statement contained in this announcement whether as a result of new information, future developments or otherwise.