SWISS concludes term sheet for secured credit facility

24. September 2004

Following complex negotiations, SWISS has signed a term sheet for a CHF 325 million secured credit facility with an international banking syndicate. The consent of various third parties must still be obtained before a definitive credit agreement can be concluded and the credit will be made available.

SWISS announced today that it has signed a term sheet ("agreement in principle") with an international banking syndicate, setting out all of the key elements for the granting of a secured credit facility.

Various third parties must still give their consent before a definitive credit agreement can be concluded and the credit will be made available.

Part of the credit facility will be used by SWISS to discharge existing liabilities. SWISS will therefore have access to net additional liquidity of CHF 180 million under the credit facility. This amount will then increase to CHF 290 million in June 2005 when SWISS meets its obligations under certain of its existing aircraft lease agreements.

The banking syndicate comprises Halifax Bank of Scotland (Lead Agent and Lead Arranger, CHF 100 million), Barclays Capital (Lead Arranger, CHF 55 million), Credit Suisse (CHF 75 million), UBS (CHF 75 million) and the Zurich Cantonal Bank (CHF 20 million).

Christoph Franz, CEO of SWISS, said: “We are very pleased that we have been able to sign a term sheet for a credit facility with the banks involved, following intensive negotiations. We are confident that we will rapidly conclude the definitive credit agreement and, with a strengthened liquidity base, will then be able to implement the necessary steps to further strengthen our competitive position in the ever changing aviation market.”