HNA considers to refinance Swissport debt as sale stalls

Bloomberg

HNA Group Co is considering refinancing Swissport International’s debt after talks to sell the airport-cargo handler stalled on valuation, people familiar with the matter said.
The Chinese conglomerate is working with advisers to extend Swissport’s debt maturities and ease pressure from creditors, the people said, asking not to be identified because the matter is private. While the refinancing is the parent company’s primary focus, a sale hasn’t been ruled out, the people said.
Swissport has about 1.5 billion euros ($1.7 billion) of debt, including loans and bonds maturing in 2021 and 2022, according to Bloomberg data.
HNA, which bought Swissport for 2.73 billion Swiss francs ($2.8 billion) in 2015, had previously held talks to sell the division to potential bidders including Brookfield Asset Management Inc and Cerberus Capital Management, people familiar with the matter said as recently as in October. The Chinese firm is working to sell billions of dollars in assets after an acquisition spree left it with one of the highest levels of corporate debt in China.
A spokesman for HNA declined to comment.
Swissport, which also offers ticketing, cabin cleaning and aircraft maintenance, had previously been slated for an initial public offering before the sale consideration. The conglomerate decided to postpone the share sale last year, citing a volatile market.
Other businesses that HNA has considered selling include its majority stake in oil storage and logistics business HG Storage International Ltd as well as container-leasing business Seaco, tech outsourcing arm Pactera Technology International Ltd and aircraft-maintenance firm SR Technics, Bloomberg News has reported.