TIDMAVN
RNS Number : 9944X
Avanti Communications Group Plc
28 February 2017
28 February 2017
AVANTI COMMUNICATIONS GROUP PLC
2017 First Half Results
Avanti Communications Group plc ("Avanti" or "the Group"), a
leading provider of satellite data communications services in
Europe, the Middle East and Africa, issues the following results
for the six months ended 31 December 2016.
Highlights
-- Completed Strategic review with new financing of $242.0 million closed
-- Revenue for the 6 months of $32.3 million (2015: $31.0 million)
-- EBITDA loss of $6.3 million (2015: loss of $3.8 million)
-- Cash balances of $62 million as of February 17(th,) 2017
-- Available fleet capacity now enlarged by 21% with the introduction of Hylas 2B
-- Fleet utilisation calculation on the enlarged capacity in the
30-35% band (June 2016 pro-forma: 25-30% band)
David Williams, Avanti's CEO said:
Avanti has begun 2017 with a renewed focus having secured
additional financing to help us carry out our strategy. Whilst the
effect of financial disruption hampered our ability to grow,
activity since the announcement of financing in December has been
encouraging. Geopolitical risks across all of our markets persist,
with issues like Brexit, Middle Eastern instability and African
currency weakness continuing to challenge. However, contract wins
with larger telcos and government customers have continued with
tender awards and contract awards amounting to $26.0 million since
we announced financing in December. The market leading innovations
that we have created, like our 4G cellular backhaul product,
successfully sold in a global first to EE, are giving us momentum
in marketing to new customers.
For further information please contact:
Avanti: David Williams / Nigel Fox +44 (0)207 749 1600
Cenkos Securities: Max Hartley (Nomad) / Julian Morse, +44
(0)207 397 8900
Montfort: Nick Miles / James Olley, +44 (0)203 770 7909
Redleaf: Lara Pyliotis, +44 (0)207 382 4734
Notes to editors
Avanti connects people wherever they are - in their homes,
businesses, in government and on mobiles. Through the HYLAS
satellite fleet and more than 180 partners in 118 countries, the
network provides ubiquitous internet service to a quarter of the
world's population. Avanti delivers the level of quality and
flexibility that the most demanding telecoms customers in the world
seek.
Avanti was the first mover in high throughput satellite data
communications in EMEA. It has rights to orbital slots and Ka band
spectrum in perpetuity that covers an end market of over 1.7bn
people.
The Group has invested $1.2bn in a network that incorporates
satellites, gateway earth stations, datacentres and a fibre
ring.
Avanti has a unique Cloud based customer interface that is
protected by patented technology.
The Group has three satellites in orbit and a further two
satellites under construction.
Avanti Communications is listed in London on AIM (AVN:LSE).
www.avantiplc.com
This announcement contains Inside Information.
Strategic Review
The period was dominated by the Strategic Review that we
commenced in July 2016. An initial consent was received from 89% of
the Bondholders to convert the majority of the October 2016
interest coupon into additional bonds in order to allow the Board
to fully consider their options.
In December 2016 the Board entered into a second consent
solicitation with the Bondholders for additional liquidity of up to
$242 million. This consent was concluded in January 2017 and will
be reflected on the year-end balance sheet.
Operating review
The trading in the first half of the year, has been slower than
hoped for primarily as a result of the uncertainty associated with
the Strategic Review which the Company initiated in July 2016.
This uncertainty manifested itself in lower than normal levels
of pipeline conversion and an extension in the sales cycle. Of the
pipeline that existed at 30 June 2016, approximately 30% was signed
by 31 December 2016 compared to historic conversion rates of over
60%. Since the conclusion of the Strategic Review and the
successful conclusion of new financing we have won some significant
new business and believe that pipeline conversion rate should now
accelerate.
In late December we received significant new Tender awards and
signed contracts in the wi-fi and cellular backhaul markets and in
government networks. We also picked up new customers for broadband
in Europe, spurred by our launch of new 40Mb platforms - the
highest speed satellite broadband in Europe.
As we reported at the end of the last financial year in order to
win volume in certain markets where end-customers are highly price
sensitive - such as broadband in Europe - we have adjusted our
prices. Our products are sold as Mb or managed accounts or as fully
integrated projects but we calculate the Price, or Yield, per MHz
per month. Yield was in the $1,500-$1,600 band during the
period.
The 3GHz 'HYLAS 2-B' satellite payload that joined the fleet in
2015 came on-line in the period with coverage over France, Germany,
Poland and the Baltic Sea. The addition of this new capacity, which
increases available capacity from 14GHz to 17GHz means the
utilisation metric has been re-based. The amended fleet utilisation
is in the 30-35% band (June 2016 re-based: 25-30% band).
The 4 GHz HYLAS 3 is a hosted payload flying on board a European
Space Agency ('ESA') satellite, for which the ESA is presently
declaring a late-2017 launch which could slip further. We are
disappointed in the performance of the manufacturer of this
system.
The construction of Avanti's key 28GHz HYLAS 4 satellite is at
an advance stage but has experienced some delays in the factory.
The spacecraft is now planned to be delivered towards the end of
the quarter ending June 2017. The timing of launch of HYLAS 4 is
currently under review pending its completion in the factory, to be
coordinated with a busy manifest from the launch vehicle provider.
HYLAS 4 will complete Avanti's coverage of EMEA. This will
materially enhance the Group's revenue generation potential,
largely within the existing fixed cost base.
Outlook
With new satellite launches pending we continue to target medium
term revenue growth as previously guided. Growth in the current
year has been limited by the disruption that existed in the first
six months. With the confidence delivered by the recent
refinancing, revenue in the second half is expected to improve.
Financial Review
Income Statement
Revenue increased by 4.2% to $32.3 million from $31.0 million
for the comparative period. There was no revenue from spectrum
co-ordination or sale of exclusivity rights in the period. On a
constant currency basis, revenue increased by 11.9 %.
Costs of sale increased to $24.1 million against $18.4 million
in the 6 months to December 2015, and were marginally up from the
$22.5 million recorded in the 6 months to June 2016.
Staff and other operating expenses were $15.1 million (2015:
$17.0 million) reflecting some benefit from movement in foreign
exchange rates but also cost control measures. Other operating
income remained flat at $0.6 million.
This left EBITDA loss of $6.3 million which widened from EBITDA
loss of $3.8 million primarily driven by the increased costs of
sale reflecting higher kit costs and third party sub contract costs
on government contracts.
There was a significant increase in the finance expense during
the period as the initial costs of the strategic review were
expensed prior to the conclusion of new financing. It is worth
noting that the finance expense will be volatile in the second half
of the financial year due to the amendment of the existing
notes.
Cash flow
Cash absorbed from operations was $20.4 million (2015: $18.9
million). However with materially lower cash interest paid of $3.5
million (2015: $27.0 million) cash absorbed from operating
activities reduced to $23.9 million (2015: absorbed $45.9
million).
Capital expenditure was low at just $4.1 million (2015: $36.4
million). With payment on finance leases and strategic review
costs, net cash decreased by $42.0 million (2015: increased $40.4
million).
Balance sheet
Movements on the balance sheet below refer to comparison with 30
June 2016.
Total non-current assets remained at a similar level to the last
financial year end as the impact of limited capital expenditure
together with depreciation and foreign exchange movements in the
translation of non-dollar assets generated a reduction of $9.9
million.
In current assets, trade and other receivables reduced to $73.5
million from $79.5 million. Whilst some of the adverse movements in
debtors at the year-end have reversed, there have been further
increases in government debtors and prepayments. There was a
similar reduction in trade and other payables.
The most significant movement in the period was the increase in
loans and other borrowings following the increase in the bonds
relating to the payment in kind of the October interest
payment.
Period end cash of $14.4m increased to $62m as of 17 February
following the receipt of the first tranche of new money offset by
certain HYLAS 4 capex payments.
Backlog
Our backlog comprises our customers' committed contractual
expenditure under existing contracts for the sale of bandwidth,
satellite services, consultancy services and equipment sales over
their current terms. Backlog does not include the value arising
from potential renewal beyond a contract's current term or
projected revenue from framework contracts. We do include projected
revenue from consultancy services provided to government customers
at the rate of $3.3 million per year, based on the average revenue
generated by these services for the last five fiscal years. Our
backlog totalled $264 million (June 2016: $290.4million).
CONSOLIDATED UNAUDITED
INCOME STATEMENT
FOR THE SIX MONTHSED
31 DECEMBER 2016
Unaudited Unaudited Audited
Half Half Year
year year ended
31-Dec-16 31-Dec-15 30-June-16
Notes $'m $'m $'m
--------------------------------- ------ ------------ ------------ -------------
Revenue
Capacity, services &
equipment 32.3 31.0 74.5
Spectrum coordination - - -
Sale of exclusivity
rights - - 8.3
--------------------------------- ------
Total revenue 32.3 31.0 82.8
--------------------------------- ------ ------------ ------------ -------------
Cost of sales - capacity,
services & equipment
(excl. satellite depreciation) (24.1) (18.4) (40.9)
Staff costs (9.9) (10.8) (19.8)
Other operating expenses (5.2) (6.2) (16.3)
Other operating income 0.6 0.6 1.5
--------------------------------- ------ ------------ ------------ -------------
EBITDA (6.3) (3.8) 7.3
--------------------------------- ------ ------------ ------------ -------------
Depreciation and amortisation (22.6) (24.1) (47.3)
--------------------------------- ------ ------------ ------------ -------------
Operating loss (28.9) (27.9) (40.0)
--------------------------------- ------ ------------ ------------ -------------
Finance income 6 1.0 2.8 13.9
Finance expense 6 (34.7) (20.4) (40.9)
Loss before taxation (62.6) (45.5) (67.0)
--------------------------------- ------ ------------ ------------ -------------
Income tax - - (2.2)
Loss for the period (62.7) (45.5) (69.2)
--------------------------------- ------ ------------ ------------ -------------
Loss attributable to:
Equity holders of the
parent 7 (61.2) (45.6) (68.7)
Non-controlling interests (1.4) 0.1 (0.5)
Basic loss per share
(cents) 7 (43.75c) (32.80c) (49.27c)
Diluted loss per share
(cents) 7 (43.75c) (32.80c) (49.27c)
--------------------------------- ------ ------------ ------------ -------------
CONSOLIDATED UNAUDITED STATEMENT
OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED
31 DECEMBER 2016
Unaudited Unaudited Audited
Half Half Year
year year ended
31-Dec-16 31-Dec-15 30-June-16
Notes $'m $'m $'m
----------------------------- ------- ------------ ------------ -------------
Loss for the period (62.6) (45.5) (69.2)
-------------------------------------- ------------ ------------ -------------
Other comprehensive
income
Exchange differences
on translation of foreign
operations and investments
that may be recycled
to the Income Statement (15.7) 4.2 13.8
Exchange differences
on translation of foreign
operations and investments
that will not be recycled
to the Income Statement - (20.1) (58.9)
Total comprehensive
loss for the period (78.3) (61.4) (114.3)
-------------------------------------- ------------ ------------ -------------
Attributable to:
Equity holders of the
parent (76.9) (61.5) (113.8)
Non-controlling interests (1.4) 0.1 (0.5)
-------------------------------------- ------------ ------------ -------------
CONSOLIDATED UNAUDITED STATEMENT
OF FINANCIAL POSITION
AS AT 31 DECEMBER
2016
Unaudited Unaudited Audited
Half Half Year
year year ended
31-Dec-16 31-Dec-15 30-June-16
Note $'m $'m $'m
------------------------- ----- ------------ ------------ -------------
ASSETS
Non-current assets
Property, plant
and equipment 768.8 730.1 775.1
Intangible assets 10.4 11.0 10.8
Deferred tax
assets 15.4 18.4 18.6
Total non-current
assets 794.6 759.5 804.5
------------------------- ----- ------------ ------------ -------------
Current assets
Inventories 2.6 3.2 1.9
Trade and other
receivables 8 73.5 44.2 79.5
Cash and cash
equivalents 14.4 162.6 56.4
Total current
assets 90.5 210.0 137.8
------------------------- ----- ------------ ------------ -------------
Total assets 885.1 969.5 942.3
------------------------- ----- ------------ ------------ -------------
LIABILITIES AND
EQUITY
Current liabilities
Trade and other
payables 77.5 57.4 82.8
Loans and other
borrowings 9 4.8 3.3 3.3
Total current
liabilities 82.2 60.7 86.1
------------------------- ----- ------------ ------------ -------------
Non-current liabilities
Trade and other
payables 10.4 14.7 12.7
Loans and other
borrowings 9 669.2 640.0 642.0
Total non-current
liabilities 679.6 654.7 654.7
------------------------- ----- ------------ ------------ -------------
Total liabilities 761.8 715.4 740.8
------------------------- ----- ------------ ------------ -------------
Equity
Share capital 2.5 2.5 2.5
EBT shares (0.1) (0.1) (0.1)
Share premium 515.9 515.7 515.9
Foreign currency
translation reserve (77.2) (32.3) (61.5)
Retained earnings (313.9) (229.7) (252.7)
Total parent
shareholders'
equity 127.2 256.1 204.1
Non-controlling
interests (4.0) (2.0) (2.6)
------------------------- ----- ------------ ------------ -------------
Total equity 123.2 254.1 201.5
------------------------- ----- ------------ ------------ -------------
Total liabilities
and equity 885.1 969.5 942.3
------------------------- ----- ------------ ------------ -------------
CONSOLIDATED UNAUDITED STATEMENT
OF CASHFLOWS
FOR THE SIX MONTHSED
31 DECEMBER 2016
Unaudited Unaudited Audited
Half Half Year
year year ended
31-Dec-16 31-Dec-15 30-June-16
Notes $'m $'m $'m
------------------------------------ ------ ------------ ------------ -------------
Cash flow from operating
activities
Cash (absorbed) by operations 10 (20.3) (18.9) (31.8)
Interest paid (3.5) (27.0) (60.5)
Interest received - - -
Net cash (absorbed) by operating
activities (23.9) (45.9) (92.3)
------------------------------------ ------ ------------ ------------ -------------
Cash flows from investing
activities
Payments for other financial
assets and investments - - -
Payments for property, plant
and equipment (4.1) (36.4) (95.7)
Proceeds from sale and leaseback - - 2.2
Net cash used in investing
activities (4.1) (36.4) (93.5)
------------------------------------ ------ ------------ ------------ -------------
Cash flows from financing
activities
Proceeds from bond issue - 115.0 115.0
Proceeds from share issue - 10.5 10.7
Repayment of borrowings - -
Payment of finance lease
liabilities (2.2) (2.2) (4.1)
Cost of existing finance - - -
Debt issuance costs (10.9) (0.2) (0.2)
Net cash received from (used
by)/financing activities (13.1) 123.1 121.4
------------------------------------ ------ ------------ ------------ -------------
Effects of exchange rate
on the balances of cash and
cash equivalents (0.9) (0.4) (1.4)
Net (decrease)/increase in
cash and cash equivalents (42.0) 40.4 (65.8)
Cash and cash equivalents
at the beginning of the financial
year 56.4 122.2 122.2
Cash and cash equivalents
at the end of the financial
period 14.4 162.6 56.4
------------------------------------ ------ ------------ ------------ -------------
CONSOLIDATED UNAUDITED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31 DECEMBER 2016
Employee Foreign
benefit currency
Share trust Share Retained translation Non-controlling Total
capital (EBT) premium earnings reserve interests equity
$'m $'m $'m $'m $'m $'m $'m
---------------- --------- --------- --------- ---------- ------------- ---------------- --------
As at 1 July
2015 2.4 (0.1) 505.3 (184.4) (16.4) (2.1) 304.7
Loss for the
year - - - (45.6) - 0.1 (45.5)
Other
comprehensive
income - - - - (15.9) - (15.9)
Issue of share
capital 0.1 - 10.4 - - - 10.5
Share based
payments - - - 0.3 - - 0.3
As at 30
December
2015
(Unaudited) 2.5 (0.1) 515.7 (229.7) (32.3) (2.0) 254.1
---------------- --------- --------- --------- ---------- ------------- ---------------- --------
As at 1 January
2016 2.5 (0.1) 515.7 (229.7) (32.3) (2.0) 254.1
Loss for the
year - - - (22.9) - (0.6) (23.5)
Other
comprehensive
income - - - - (29.2) - (29.2)
Issue of share
capital - - 0.2 - - - 0.2
Share based
payments - - - 0.2 - - 0.2
As at 30 June
2016 (Audited) 2.5 (0.1) 515.9 (252.4) (61.5) (2.6) 201.8
---------------- --------- --------- --------- ---------- ------------- ---------------- --------
As at 1 July
2016 2.5 (0.1) 515.9 (252.7) (61.5) (2.6) 201.5
Loss for the
year - - - (61.3) - (1.4) (62.7)
Other
comprehensive
income - - - - (15.7) - (15.7)
Issue of share
capital - - - - - - -
Share based
payments - - - 0.1 - - 0.1
As at 30
December
2016
(Unaudited) 2.5 (0.1) 515.9 (313.9) (77.2) (4.0) 123.3
---------------- --------- --------- --------- ---------- ------------- ---------------- --------
1. General information
Avanti Communications Group plc ('the Company') is a public
company incorporated and domiciled in the United Kingdom. The
address of its registered office is 20 Black Friars Lane, London
EC4V 6EB. The Company is listed on AIM.
These unaudited condensed consolidated interim financial
statements ("the interim financial statements") were approved for
issue on 28 February 2017.
2. Basis of preparation
These interim financial statements for the six months ended 31
December 2016 have been prepared in accordance with IAS 34,
"Interim Financial Reporting", as adopted by the EU. The interim
financial statements should be read in conjunction with the annual
financial statements for the year ended 30 June 2016, which have
been prepared in accordance with International Financial Reporting
Standards ("IFRSs"), as adopted by the EU.
The accounting policies applied are consistent with those of the
annual financial statements for the year ended 30 June 2016.
The interim financial statements have not been audited or
reviewed and do not constitute statutory accounts within the
meaning of Section 434 of the Companies Act 2006. The audited
statutory accounts for the year ended 30 June 2016 were approved by
the Board of Directors on 20 December 2016 and have been delivered
to the Registrar of Companies. The auditor's report on these
accounts was not qualified, did not contain statements under
section 498(2) or (3) of the Companies Act 2005 but did draw
attention to a matter by way of emphasis.
3. Accounting policies
The same accounting policies, presentation and methods of
computation are followed in these condensed consolidated interim
financial statements as were applied in the preparation of the
Group's annual financial statements for the year ended 30 June
2016.
The condensed consolidated interim financial information
presented does not comply with the full disclosure requirements of
all applicable IFRSs.
4. Segmental reporting
The Group currently earn revenue primarily from the sale of
satellite broadband services to customers and from providing
consultancy advice connected with the exploitation of the space
assets. On adoption of IFRS 8, 'Operating Segments', the Group
concluded that the Chief Operating Decision Maker (the Avanti
Executive Board) manage the business and the allocation of
resources on the basis of the provision of satellite services,
resulting in one segment.
5. Income tax
No income tax credit or deferred tax asset has been recognised
in respect of the losses for the six month period to 31 December
2016 (30 June 2016: charge $2.2 million, 31 December 2015: $ nil).
Whilst the company foresees utilising the losses in future periods,
it has not recognised the income tax credit or deferred tax in this
period.
6. Net finance (expense)/income
Unaudited Unaudited Audited
Half Half Year
year year ended
31-Dec-16 31-Dec-15 30-June-16
$'m $'m $'m
-------------------------------- ------------ ------------ -------------
Finance income
Financing exchange gain 1.0 2.8 13.9
1.0 2.8 13.9
-------------------------------- ------------ ------------ -------------
Finance expense
Interest expense on borrowings
and loans (33.1) (30.7) (67.4)
Finance lease expense (1.7) (1.9) (1.8)
Financing costs (strategic
review) (14.6) - -
Less: interest capitalised
to satellite in construction 14.6 12.2 28.3
--------------------------------
(34.8) (20.4) (40.9)
-------------------------------- ------------ ------------ -------------
Net finance expense (33.7) (17.6) (27.0)
-------------------------------- ------------ ------------ -------------
7. Earnings/(loss) per share
Unaudited Unaudited Audited
Half Half Year
year year ended
31-Dec-16 31-Dec-15 30-June-16
Cents Cents Cents
-------------------------------- ------------ ------------ ------------
Basic and diluted loss
per share (43.75) (32.80) (49.27)
-------------------------------- ------------ ------------ ------------
The calculation of basic and diluted earnings/(loss)
per share is based on the earnings attributable
to
ordinary shareholders divided by the weighted
average number of shares in issue during the
year.
Unaudited Unaudited Audited
Half Half Year
year year ended
31-Dec-16 31-Dec-15 30-Jun-16
Loss for the year attributable
to equity holders of the
parent Company $(62.6)m $(45.6)m $(68.7)m
Weighted average number
of ordinary shares for
the
purpose of basic earnings
per share 139,891,059 138,977,660 139,428,427
-------------------------------- ------------ ------------ ------------
8. Trade and other receivables
Unaudited Unaudited Audited
Half Half Year
year year ended
31-Dec-16 31-Dec-15 30-June-16
$'m $'m $'m
------------------------------- ------------ ------------ -------------
Trade receivables 43.5 27.1 45.8
Less provision for impairment
of trade receivables (6.7) (5.2) (6.5)
Net trade receivables 36.8 21.9 39.3
------------------------------- ------------ ------------ -------------
Accrued income 26.5 13.5 27.7
Prepayments 6.3 6.8 10.3
Other receivables 4.0 2.0 2.2
73.6 44.2 79.5
------------------------------- ------------ ------------ -------------
9. Loans and borrowings
Current Non-current
---------------------------------------- ----------------------------------------
Unaudited Unaudited Audited Unaudited Unaudited Audited
Half Half Year Half Half Year
year year ended year year ended
31-Dec-16 31-Dec-15 30-Jun-16 31-Dec-16 31-Dec-15 30-Jun-16
$'m $'m $'m $'m $'m $'m
------------ ------------ ------------ ------------ ------------ ------------
Secured at
amortised
cost
High yield
bonds - - - 660.2 627.4 629.5
Finance lease
liabilities 4.8 3.3 3.3 9.0 12.6 12.5
4.8 3.3 3.3 669.2 640.0 642.0
--------------- ------------ ------------ ------------ ------------ ------------ ------------
9. Loans and borrowings (continued)
High yield
bonds
Original
Description notional
Issuer of instrument value Due
10%
Senior
Avanti Communications Secured 1 October
Group plc Notes $685.2m 2019
Unaudited Unaudited Audited
Half Year
Half year year ended
31-Dec-16 31-Dec-15 30-Jun-16
$'m $'m $'m
-------------------------- --------------- ------------ ------------
High yield
bonds 685.2 645.0 645.0
Add:
Issue premium 3.9 5.3 4.6
Less:
Debt issuance
costs (11.3) (13.8) (12.3)
Issue discount (17.6) (9.1) (7.8)
660.2 627.4 629.5
-------------------------- --------------- ------------ ------------
The Company had 10% Senior Secured Notes with a nominal value of
$645.0m in issue at the beginning of the period. On 17 October
2016, the Company announced the result of a successful consent
solicitation process ("September Consent Solicitation"). The
Company received consents from holders of 89.5% of its Senior
Secured Notes to permit paying the interest due on 1 October 2016
in respect of consenting holders' Senior Secured Notes in the form
of additional Senior Secured Notes on the same terms as the
existing Senior Secured Notes in lieu of cash. As a result,
additional Senior Secured Notes with a nominal value of $40.4m were
issued in lieu of $29.1m of cash coupon. A cash coupon of $3.4m was
paid to the 10.5% of holders from whom consent was not received in
October 2016.
10. Cash absorbed by operations
Unaudited Unaudited Audited
Half Half Year
year year ended
31-Dec-16 31-Dec-15 30-June-16
$'m $'m $'m
------------------------------- ------------ ------------ -------------
Loss before taxation (62.6) (45.5) (67.0)
Interest receivable - - -
Interest payable 33.7 19.3 38.8
Amortised bond issue
costs 1.1 1.1 2.4
Foreign exchange losses
in operating activities (6.2) (2.6) (15.1)
Depreciation and amortisation
of non-current assets 22.6 24.1 47.3
Share based payment expense 0.1 0.3 0.4
(Increase)/ Decrease
in stock (0.8) (0.6) 0.6
Decrease/(Increase) in
debtors 2.1 (10.5) (49.4)
(Decrease)/increase in
trade and other payables (10.3) (4.5) 10.6
Cash absorbed by operations (20.3) (18.9) (31.6)
------------------------------- ------------ ------------ -------------
11. Post balance sheet events
On 20 December 2016, the Company announced:
-- the launch of a proposed refinancing of $242 million of
additional liquidity through $130 million of new cash funding and
up to $112 million of potential interest deferrals up to April
2018.
-- the agreement of holders representing approximately 73% of
Avanti's senior secured notes due 2019 (the "Existing Notes") to
fully underwrite the $130 million of new cash funding and consent
to certain amendments and waivers to the Existing Indenture (as
defined herein) necessary to implement the proposed refinancing
-- the launch of a consent solicitation and exchange offer (the
"Consent Solicitation and Exchange Offer") to effect the proposed
amendments and waivers to the Existing Indenture, requiring the
support of holders representing at least 90% in aggregate principal
amount of the Existing Notes (the "Requisite Consents"). Proposed
Amendments (as defined herein) include creation of a new $132.5
million Super Senior Debt (as defined herein) basket which could be
used in the near term to substantially reduce the Company's
interest cost
After the period end on 23 January 2017, the Company announced
the result of the successful consent solicitation and exchange
offer to successfully complete the refinancing transaction. The
Company received consents from holders representing 93.91% in
aggregate principal amount of the Existing Notes in connection with
the Consent Solicitation and holders representing approximately 92%
in aggregate principal amount of the Existing Notes had elected to
participate in the New Money Offer and validly tendered their
Existing Notes in connection with the Exchange Offer.
Finally, on 8 February 2017, the Company announced that it had
issued 14,739,599 new ordinary shares of 1p each ("New Ordinary
Shares") in the Company as part of the Refinancing announced on 20
December 2016. Under the terms of the Refinancing, New Money
Backstop Creditors that elected to purchase more than their pro
rata share of PIK Toggle Notes pursuant to the New Money Offer were
offered, together with the Initial Consenting Creditors, the right
to subscribe for their pro rata share of the New Ordinary Shares at
nominal value.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UBVARBBAUUUR
(END) Dow Jones Newswires
February 28, 2017 02:01 ET (07:01 GMT)
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