Restructuring of the Group's Financial Indebtedness

(lifePR) ( Zurich, )
gategroup Holding AG (“gategroup”, the “Company” and together with its subsidiaries, the “Group”) is pleased to announce that its shareholders, RRJ Capital and Temasek, and all bank lenders providing syndicated loans to the Group have reached an agreement in principle, under a binding term sheet, to support a comprehensive restructuring of the Group’s financial indebtedness (the “Transaction”). The proposed Transaction will provide the Group with significant new liquidity to address short and medium-term needs and will help establish a stable capital structure.

Overview of the Transaction
The Transaction is fully supported by the Group’s shareholders and its bank lenders under a combined facilities agreement. Key features of the proposed Transaction consist of:

CHF 500m new funding provided by shareholders in the form of CHF 25m in equity and a CHF 475m subordinated, convertible loan upon completion of the Transaction;
CHF 200m provided as a senior secured interim liquidity facility extended by shareholders repayable upon completion of the Transaction or latest 6 months after issuance; and
The extension of the maturity of the Group’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 finalising 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 in due course.

“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.” says gategroup CEO Xavier Rossinyol.

Rossinyol continues: “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.” 

Forward-Looking Statements
This publication contains forward-looking statements and other statements that are not historical facts. The words “believe”, “anticipate”, “plan”, “expect”, “project”, “estimate”, “predict”, “intend”, “target”, “assume”, “may”, “will” “could” and similar expression are intended to identify such forward-looking statements. Such statements are made on the basis of assumptions and expectations that we believe to be reasonable as of the date of this publication but may prove to be erroneous and are subject to a variety of significant uncertainties that could cause actual results to differ materially from those expressed in forward looking statements. Among these factors are changes in overall economic conditions, changes in demand for our products, changes in the demand for, or price of, oil, risk of terrorism, war, geopolitical or other exogenous shocks to the airline sector, risks of increased competition, manufacturing and product development risks, loss of key customers, changes in government regulations, foreign and domestic political and legislative risks, risks associated with foreign operations and foreign currency exchange rates and controls, strikes, embargoes, weather-related risks and other risks and uncertainties. We therefore caution investors and prospective investors against relying on any of these forward-looking statements. We assume no obligation to update forward-looking statements or to update the reasons for which actual results could differ materially from those anticipated in such forward-looking statements, except as required by law.
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