Avianca Holdings takes key step to refinance its debts


It achieved 86.4% participation in bond exchange, but there are still acceptances.

As part of its strong financial and operational adjustment process, Avianca Holdings, aviation company parent, achieved an 86.4 percent share of acceptance in the $ 550 million bond exchange offer that expires in the 2020 and whose goal is to move your payment date to the year 2023.

According to the company's Financial Vice President, Adrián Neuhauser, this high percentage demonstrates the confidence of bondholders in the long-term plan that the company has drawn up and which consists in reducing debt levels, increasing cash flows and optimizing profitability. and operational efficiency.

For his part, Roberto Kriete, chairman of the board of directors and head of Kingsland Holdings, the company's main partner, said that an important step was taken in the direction Avianca has set. However, at the same time, he pointed out that the company is expected to quickly reach an agreement with the other creditors and business partners “in order to make the investment we have announced with United Airlines, and continue moving forward with the Avianca 2021 plan.”

Speak United Airlines

Meanwhile, from United Airlines, John Gebo, senior vice president of Alliances said that "United congratulates Avianca Holdings for successfully achieving the exchange of 86.4 percent of the amount of its bonds due in May 2020".

And he added that this step is enough to meet the requirement of the US company regarding this exchange. “The financing commitment remains subject to compliance with other conditions, including certain commitments and waivers (exemptions) by other creditors and business partners of Avianca Holdings.”

After reaching said acceptance percentage, all bondholders who committed themselves will be subject to exchange their bonds under the conditions agreed in the exchange offer memorandum, obtaining real guarantees.

In addition, subject to the investment of United Airlines and Kingsland Holdings Limited of up to 250 million, the term of the bond will be extended automatically, for three years (by 2023) and with a coupon of 9 percent.

The company added that it works quickly to formalize the necessary consents of the other creditors, banks and financial institutions, to grant the guarantees offered in the exchange, which are mainly its brand and some assets such as its own aircraft.

While they materialize, the company extended the closing of the transaction until September 25. During this period those bondholders who have not participated may do so.

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