Avianca Group Reports High Participation in Bond Exchange Offer
As of 5:00 PM on January 28, 2025, $1.109 billion in Senior Bonds had been tendered for exchange, representing 99.74% of the total outstanding amount.
Avianca Group International Limited has announced the preliminary results of the exchange offer by its subsidiary, Avianca Midco 2 PLC, for the swap of all outstanding senior secured Tranche A-1 bonds due in 2028, with a 9.000% interest rate ("Existing Bonds"), for new senior secured bonds under the same terms ("New Bonds"). The company also sought approval for amendments to the Existing Bonds’ indenture.
According to D.F. King & Co, Inc., the exchange and information agent, as of 5:00 PM (New York time) on January 28, 2025, bondholders had tendered $1.109 billion in Existing Bonds for exchange, representing 99.74% of the total outstanding amount. This result meets the minimum exchange condition.
The company secured the necessary consent from at least 90% of Existing Bondholders to amend the indenture. These modifications include the removal of contractual restrictions, adjustments to default events, and other provisions, as well as the release of collateral tied to the Existing Bonds.
Conditions for Completion
The completion of the exchange offer remains subject to various conditions. These include the issuance of new bonds in a Concurrent Offering, with proceeds sufficient to redeem the senior secured Tranche A-2 bonds and repay loans under the LifeMiles Credit Agreement.
Additionally, the offer requires the release of collateral linked to LifeMiles financing. Avianca has stated that it reserves the right to modify or withdraw the offer at any time, in accordance with applicable regulations.
Deadlines and Settlement
Bondholders who have not participated in the early exchange period may still tender their bonds until February 11, 2025. However, bonds submitted after January 28 may no longer be withdrawn. The settlement of the offer is scheduled for February 14, 2025.
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