Deutsche Lufthansa AG: Swiss Federal Council proposes state guarantees for loans amounting to CHF 1.5 billion for SWISS and Edelweiss
April 29, 2020 at 10:20 am EDT
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DGAP-Ad-hoc: Deutsche Lufthansa AG / Key word(s): Financing
Deutsche Lufthansa AG: Swiss Federal Council proposes state guarantees for loans amounting to CHF 1.5 billion for SWISS and Edelweiss
29-Apr-2020 / 16:15 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
During a meeting today, the Swiss Federal Council decided on a comprehensive support package for Swiss aviation companies. According to the decision, the Federal Council will propose to the Swiss parliament to guarantee loans to Swiss airlines. Pending parliament approval, the two Swiss airlines of the Lufthansa Group, SWISS and Edelweiss, will receive guarantees from the Swiss Bund for 85% of the loans totaling 1.5 billion Swiss francs (approx. 1.4 billion euros).
A consortium of Swiss banks will grant the loans at market conditions for a term of up to five years. The Swiss Bund guarantees 85% of the loans and they are secured by SWISS and Edelweiss shares held by Deutsche Lufthansa AG. The funds may only be used at SWISS and Edelweiss. No intra-group dividend payments must be made for the period during which the credit facility is drawn down.
The Executive Board and the Steering Committee of the Supervisory Board of Deutsche Lufthansa AG approved the financing transaction at their meetings today. The guarantees are subject to the approval of the Swiss parliament, which will decide on the matter at its meeting on 4 and 5 May.
Apart from the credit agreement in Switzerland, the Executive Board of Deutsche Lufthansa AG is continuing to negotiate intensively with the governments in Germany, Austria and Belgium in order to secure the Group's solvency for the long term.
Responsible: Dennis Weber, Head of Investor Relations, +49 69 696 28000
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29-Apr-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
Language:
English
Company:
Deutsche Lufthansa AG
Venloer Str. 151-153
50672 Cologne
Germany
Phone:
+49 (0)69 696 28000
Fax:
+49 (0)69 696 90990
E-mail:
investor.relations@dlh.de
Internet:
www.lufthansagroup.com/investor-relations
ISIN:
DE0008232125, DE0008232125
WKN:
823212
Indices:
DAX
Listed:
Regulated Market in Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover; Regulated Unofficial Market in Tradegate Exchange
Deutsche Lufthansa AG is a Germany-based aviation company, which provides passenger and cargo air transportation services worldwide. The Company's segments include Passenger Airlines, Logistics, MRO and Catering. The Passenger Airlines segment includes Lufthansa Airlines, SWISS, Austrian Airlines, Brussels Airlines and Eurowings. The Logistics segment includes the airfreight container management specialist Jettainer group, the time:matters Group, which specialises in urgent shipments, the subsidiary Heyworld, which specialises in tailored solutions for the e-commerce sector, CB Customs Broker, the customs and customs clearance specialist, and the Lufthansa Groupâs 50% stake in the cargo airline AeroLogic. The MRO segment, represented by the Lufthansa Technik group, is a global provider of maintenance, repair and overhaul services for civil and commercial aircraft. The Catering segment consists of traditional catering and onboard retail along with food commerce activities.