BOGOTA, Colombia, Sept. 12, 2019 /PRNewswire/ -- Avianca
Holdings S.A. (the "Company" or "Avianca") (NYSE: AVH, BVC: PFAVH)
announced today that 86.4% of the outstanding principal of its
US$ 550 million bonds due
May 2020 had been validly tendered as
of midnight on September
11th pursuant to the exchange offer launched by
the Company on August
14th.
Adrián Neuhauser, Chief Financial Officer of the Company,
commented: "We are very grateful for the broad participation
achieved in the exchange. The high percentage of bonds tendered
demonstrates our bondholders' confidence in the Company's long-term
plan, focused on reducing leverage levels, increasing cash flow,
and optimizing profitability and operational efficiency."
The president of Kingsland Holdings Limited, Roberto Kriete, added: "We are very satisfied
with this outcome, which represents a critical step in the plan
laid out by the Company. We expect Avianca to quickly reach
agreement with its other key creditors and stakeholders in order
for us to be able to carry out, together with United Airlines, our
previously announced investment and continue to move forward with
the Avianca 2021 plan."
"United congratulates Avianca Holdings on successfully achieving
the exchange of 86.4% of the outstanding principal amount of their
May 2020 bonds," said John Gebo, United's senior vice president of
Alliances. "We are also pleased to confirm that this achievement is
sufficient to satisfy United's requirement for the exchange of
these May 2020 bonds, regarding our
previously announced offer, together with Kingsland, to loan
$250 million to Avianca
Holdings. Our loan remains contingent on certain other
conditions being met by Avianca Holdings, including certain
commitments and waivers made by other stakeholders."
All participating bondholders will receive secured notes as
described in the exchange offer memorandum. In addition, such notes
will automatically exchange for new notes with a 3-year extended
maturity and a 9% coupon, subject to completion of a US$ 250 million financing led by United Airlines
and Kingsland Holdings Limited in Avianca.
Avianca is working swiftly to formalize the necessary consents
from other lenders, banks and financial institutions in order to
grant the guarantees offered in the exchange and finalize the
process. The Company has extended the exchange deadline through
September 25th, and
bondholders who have not yet validly tendered can tender through
that date.
About Avianca Holdings:
Avianca is the commercial brand for the collection of passenger
airlines and cargo airlines under the umbrella company Avianca
Holdings S.A. Avianca has been flying uninterrupted for 100 years.
With a fleet of 175 aircraft, Avianca serves 76 destinations in 27
countries within the Americas and Europe. With more than 21,000 employees, the
Company earned US$4.8 billion in 2018
and transported 30.5 million passengers. On February 22, 2019, Avianca Holdings, S.A.
announced its corporate transformation plan consisting of four key
pillars: 1) the improvement of operational indicators, 2) fleet
adjustments, 3) the optimization of operational profitability and
4) repositioning of non-strategic assets. Last May 24th, control of the Company was assumed by
Kingsland Holdings Limited, an independent third party of United
Airlines.
About Kingsland:
Kingsland Holdings Limited is a shareholder of Avianca Holdings,
S.A. with 40 years of aviation experience. Kingsland is chaired by
Roberto Kriete, who has been part of
the Board of Directors of Avianca Holdings S.A. since 2010. He was
the founder of Volaris, a pioneer of TACA and president of the
Latin American Air Transport Association.
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SOURCE Avianca Holdings S.A.