Ad hoc announcement pursuant to Art. 53 of the SIX Swiss Exchange Listing Rules
gategroup announces launch of syndication for new term loan financing
May 15, 2025
gategroup Holding AG and its subsidiaries (together "gategroup") is announcing that it is launching a syndication in the institutional loan market of proposed new senior secured term loan Bs. In connection with the financing, gategroup also expects to enter into a new revolving credit facility in an amount of approx. CHF 300 million (equivalent) (together with the term loan B, the "New Financing").
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.
There can be no assurances that the New Financing will be entered into. Closing of the New Financing is subject to market conditions, as well as the negotiation and execution of definitive documents and the satisfaction of customary closing conditions.
In terms of current trading, the strong trading in Q4 2024 has continued in Q1 2025 with revenues of CHF 1,245million, +9% vs. Q1 2024, EBITDA of CHF 66million, +89% vs. Q1 2024 and an EBITDA margin of 5.3%, a +222bps improvement vs. Q1 2024. On a LTM Q1 2025 basis, reported EBITDA increased to CHF 422m, which compares to CHF 391m EBITDA for FY 2024. In terms of regional performance, all regions exceeded Q1 2024 results.
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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.
