Avanti Communications Group Plc New $100 Million Super Senior Facility (2664I)
June 16 2017 - 2:00AM
UK Regulatory
TIDMAVN
RNS Number : 2664I
Avanti Communications Group Plc
16 June 2017
RNS For immediate release
Avanti Communications Group plc
Announces new $100 Million Super Senior Facility at 7.5%
16 June 2017
Avanti Communications Group plc (the "Company") today announces
that it has entered into a facility agreement with HPS(1) which
will provide a $100 million three-year super senior facility (the
"Super Senior Facility"). The proceeds from the Super Senior
Facility replaces an existing undrawn higher cost $50m debt
facility and provides $50m additional new liquidity and will be
used to complete the construction and launch of the Company's HYLAS
4 satellite and, subject to certain conditions, may be used to
redeem or repurchase some of the Company's outstanding high yield
notes. The interest rate is 7.5% p.a, versus a rate of over 10%
p.a. on the facility that is being replaced.
In order to incur the Super Senior Facility, the Company has
received sufficient consents from holders of its outstanding notes
to certain amendments to the indentures governing the notes and the
intercreditor agreement, including amendments to the EBITDA
financial covenant such that the first testing date is to be moved
from 30 June 2017 to 31 March 2018 and the thresholds are to be
lowered.
The Super Senior Facility will close upon execution of the
necessary documents which the Company expects to occur on or around
21 June 2017. Upon the incurrence of the Super Senior Facility, the
Company will cancel all outstanding commitments for holders of its
2021 PIK Toggle Notes to purchase delayed draw notes on 30 June
2017 and 30 November 2017.
Paul Walsh, Chairman of the Company, said "This transaction is a
positive step for the Company to lower its cost of capital with a
prominent global investor and provide additional headroom in a
crucial period with the launch of HYLAS 4 pending and customer
demand for our products recovering."
This announcement contains inside information
Important Notices
This announcement is for information purposes only and is not
intended to, and does not, constitute or form part of any offer,
invitation or the solicitation of an offer to purchase, otherwise
acquire, subscribe for, sell or otherwise dispose of, any
securities whether pursuant to this announcement or otherwise. The
distribution of this announcement in jurisdictions outside the
United Kingdom may be restricted by law and therefore persons into
whose possession this announcement comes should inform themselves
about, and observe such restrictions. Any failure to comply with
the restrictions may constitute a violation of the securities law
of any such jurisdiction.
In particular, this announcement is not an offer of securities
for sale in the United States. Securities may not be offered or
sold in the United States absent registration or an exemption from
registration under the United States Securities Act of 1933. Any
securities mentioned herein have not been and will not be
registered under the United States Securities Act of 1933, and no
public offering will be made in the United States.
--ENDS-- (1) includes certain funds or accounts managed or
advised by HPS Investment Partners, LLC or an affiliate thereof
For further information please contact:
Montfort:
Nick Miles / James Olley +44 (0)203 770 7909
------------------------------- ---------------------
Redleaf:
Lara Pyliotis 44 (0)207 382 4763
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Cenkos Securities plc
Max Hartley (Nomad) / Julian
Morse +44 (0) 20 7397 8900
------------------------------- ---------------------
Notes to Editors
About Avanti Communications
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 is 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, ground stations, datacentres and a fibre ring. Avanti
has a unique Cloud based customer interface that is protected by
patented technology.
Avanti Communications is listed in London on AIM (AVN:LSE).
www.avantiplc.com
About HPS
HPS Investment Partners, LLC ("HPS") is a leading global
investment firm with a focus on non-investment grade credit.
Established in 2007, HPS has approximately 100 investment
professionals and over 200 total employees, and is headquartered in
New York with ten additional offices globally. HPS was originally
formed as a unit of Highbridge Capital Management, LLC, a
subsidiary of J.P. Morgan Asset Management, and formerly known as
Highbridge Principal Strategies, LLC. In March 2016, the principals
of HPS acquired the firm from J.P. Morgan, which retained
Highbridge's hedge fund strategies. As of March 2017, HPS has
approximately $39 billion of assets under management.
http://www.hpspartners.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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