The global travel concession operator says the refinancing will strengthen its balance sheet and support ‘rapid growth’ across North America and Asia Pacific
SSP Group manages 2,800 food and beverage outlets at transport hubs across 36 countries | Photo credit: SSP Group
UK-based SSP Group has agreed a new £300m ($392m) four-year term loan to support strategic priorities, including growth across North America and Asia Pacific.
The global travel concession operator said the new financing will replace its now completed previous syndicated banking facilities, which consisted of £338m ($436m) in term loans and an undrawn revolving credit facility of £150m ($194m) due to mature in January 2025.
Alongside the four-year term loan, the new financing consists of a currently undrawn £300m revolving credit facility provided by a syndicate of banks, including Lloyds, Bank of America, HSBC and Barclays.
“We are pleased to complete this refinancing which strengthens our balance sheet, extends our maturity profile and maintains our high level of liquidity. The refinancing will support the ongoing delivery of our strategic priorities, including rapid growth in North America and Asia Pacific,” said Jonathan Davies, Chief Financial Officer, SSP Group.
SSP Group manages approximately 2,800 food and beverage outlets at transport hubs across 36 countries.
In May 2023, the group cited strong airport footfall in North America and recovering passenger numbers across Asia Pacific as driving its 64% half-year sales growth.
SSP Group North America revenues reached 124% of pre-pandemic levels during the period, while its Rest of the World Segment, which includes Asia Pacific, reached 112%. Total group revenues reached £1.3bn ($1.6bn).
The travel concession operator also completed the acquisition of Midfield Concessions' units at six airports across the US in May 2023. The deal scales the group’s presence at 30 of the largest airports in the US and is expected to boost revenues by $100m.