SWISS obtains previously-announced credit facility

29. October 2004

SWISS has closed a definitive credit agreement with an international banking syndicate for a CHF 325 million secured credit facility. With the enhanced liquidity base, SWISS now has access to the additional funds required to further strengthen its competitive position.

“We are pleased to have concluded this definitive credit agreement with the banks involved,” said SWISS CEO Christoph Franz following the signature of the agreement. “With our enhanced liquidity base, we will now be able to take the steps required to further strengthen our competitive position.”

The agreement provides SWISS with a total secured credit facility of CHF 325 million. Of this, net additional liquidity of CHF 180 million will be directly available. The remaining CHF 145 million will initially serve as security on obligations currently held by SWISS. Once these obligations, which arise from certain aircraft lease agreements, have been met, the credit amount available to SWISS within the overall credit facility will be gradually increased, to CHF 290 million in June 2005 and to the full CHF 325 million in the course of 2006. The credit agreement has been concluded for a three-year period.

SWISS simultaneously closed a EUR 68 million letter of credit facility provided by Barclays Capital and Halifax Bank of Scotland. The letters of credit are being issued to provide credit support for contingent obligations of Swiss under the aircraft lease agreements thereby freeing up aircraft collateral that will be pledged under the CHF325 million facility. The L/C facility does not increase Swiss indebtedness nor does it affect SWISS’ liquidity position.

The banking syndicate for the CHF 325 million credit facility comprises Halifax Bank of Scotland, Barclays Capital, Credit Suisse, UBS and the Zurich Cantonal Bank.