86.4% of Avianca bondholders accepted exchange; term extends to September 25

The process announced by Avianca Holdings to complete the exchange offer for all of its 2020 bonds, for US $ 550 million, had a 86.4% stake in the holders of the securities.

Avianca also announced today that at 11:59 p.m., New York City time, on September 11, 2019, that the total capital amount of the existing bonds that had been validly submitted for the exchange and had not been withdrawn , as confirmed by the information agent for the exchange offer, was US $ 475.2 million.

The company's CFO, Adrián Neuhauser, said the operation is in line with the long-term plan that consists in reducing debt levels, increasing cash flows and optimizing profitability and operational efficiency.

For his part, the president of Kingsland Holdings Limited and Chairman of the Board of Directors of Avianca, Roberto Kriete, said: “We expect the company 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 keep moving forward with the Avianca 2021 plan. ”

That investment, according to previous announcements, is US $ 250 million.

In turn, from United Airlines, John Gebo, senior vice president of Alliances said that “in terms of our previously announced offer to grant financing for US $ 250 million, together with Kingsland, to Avianca Holdings, we are pleased to announce that this achievement is sufficient to meet our requirement regarding this exchange. ”

And he added that the financing commitment remains subject to compliance with other conditions, including certain commitments and waivers by other creditors and business partners of Avianca Holdings. ”

In accordance with the exchange offer, all those who granted their commitment 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 and with a coupon of 9%.

Avianca Holdings said it works to formalize the necessary consents of the other creditors, banks and financial institutions, in order to grant the guarantees offered in the exchange.

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

In recent days, the airline had reported that 50% of its bondholders had accepted the exchange.

–