RESTON, Va., March 9, 2006 (PRIMEZONE) -- Global airline caterer Gate Gourmet today finalized a CHF 600 million debt refinancing.
The proceeds from the debt financing, syndicated by Goldman Sachs, have been used to pay down the senior secured debt in full as well as a part of the junior debt, with the remaining junior debt being converted to equity in the company.
The CHF 600 million financing consists of a CHF 400 million first-lien term loan, a CHF 125 million second-lien term loan, a CHF 50 million undrawn revolver and a CHF 25 million Letter of Credit facility. As a result of the refinancing, Gate Gourmet has significantly reduced the debt on its balance sheet, with lower interest payments going forward and very limited requirements to amortize the debt over the life of the facility. Following the refinancing, the company has approximately CHF 65 million of freely available cash on its balance sheet as well as access to the CHF 50 million revolving credit facility, providing ample liquidity to invest in the company's business and strengthen its capability to provide the best possible service to its customers.
As part of the refinancing package, Gate Gourmet's shareholders, led by Texas Pacific Group (TPG), has invested an additional CHF 30 million. TPG will remain the largest shareholder and retain significant control of the board and the company.
Gate Gourmet's restructuring efforts have been recognized by major credit rating agencies. Both Standard & Poor's and Moody's recently upgraded the company's ratings to B- and B2, respectively, with an outlook of "stable."
"The completion of the refinancing represents a major milestone for Gate Gourmet and its employees and reflects the financial community's confidence in the company. With a significantly reduced debt burden and healthy liquidity, Gate Gourmet is well positioned for the future," said David N. Siegel, Chairman and CEO.