Avianca Holdings S.A. Receives U.S. Court
Approval to Access US$ 2.0 Billion
Debtor-In-Possession (“DIP”)
Financing
DIP Financing Package Including US$
1.217 billion of New Funds to Support Avianca’s
Ongoing Operations and Execution of
Reorganization Process
BOGOTA, Colombia, October 05, 2020 – Avianca Holdings S.A.
(OTCMKTS: AVHOQ, BVC:
PFAVH) (the “Company” or “Avianca”) today announced that it has
received approval from the U.S. Bankruptcy Court for the Southern
District of New York (the “U.S. Court”) to access its debtor-in-possession (“DIP”)
financing totaling just over US $2.0 billion.
Adrian Neuhauser, Chief Financial Officer of Avianca said, “The
approval of the DIP financing package is a significant milestone
and an important step forward for Avianca. We would like to again
thank our lenders for their support and confidence in Avianca’s
future success. We continue to work on our go-forward operating plan in order to
emerge from this process as a stronger and more efficient airline,
and look forward to presenting our plan to the U.S Court as we move
forward in the Chapter 11 process.”
Anko van der Werff, President and Chief Executive Officer of
Avianca, added, “With U.S. Court approval to fully access this DIP
financing, Avianca has ample liquidity to support our operations as
we continue flying and serving customers. As COVID restrictions
begin to ease, we are pleased to have safely resumed passenger
flights to 21 cities in Colombia and 14 international destinations
and look forward to adding more destinations to meet our customers’
travel needs over the coming months. We thank our customers for
their loyalty, and we remain steadfast in our commitment to
connecting people, families and businesses across Latin America
through the Chapter 11 process and beyond.”
As previously announced on September 21, 2020, the Company’s
DIP financing totals approximately US$ 2.0 billion, consisting
of a US$ 1.27 billion Tranche A senior secured financing and a
US$ 722 million Tranche B secured subordinated loan. The DIP
financing includes approximately US$ 1.2 billion of new funds
(US$ 881 million in Tranche A and US$ 336 million in
Tranche B). Funding remains subject to entry of the order by the
judge in the U.S. Court and certain conditions precedent, all of
which are expected to be satisfied in the coming week.
Seabury Securities LLC is serving as Avianca’s investment bank and
financial advisor. Goldman Sachs Lending Partners LLC and JPMorgan
Chase Bank, N.A. are serving as co-lead arrangers and joint bookrunners
of the Tranche A DIP Loans. Milbank LLP is serving as Avianca’s
legal advisor.
Additional information about the DIP financing and Chapter 11
process is available on Avianca’s website
(www.aviancaholdings.com).
About Avianca Holdings S.A. (OTCMKTS: AVHOQ) (BVC:
PFAVH)
Avianca is the trademark for the group of passenger airlines and
cargo airlines under the holding company Avianca Holdings S.A.
Avianca has been flying continuously for 100 years. As of December
2019, the Company had over 21,000 employees, operated a fleet of
158 aircraft and served 76 destinations in 27 countries within the
Americas and Europe. In 2019, the Company carried 30.5 million
passengers, generating revenues of approximately US$
4.6 billion.
Forward-Looking Statements
Avianca has included statements in this press release that
constitute “forward-looking statements”. As a general matter,
forward-looking statements are those focused on future or
anticipated events or trends, expectations, and beliefs including,
among other things, the Company’s expectations with respect to its
Chapter 11 proceedings, the airline industry and the impacts of
COVID-19. Such statements
are intended to be identified by words such as “believe,” “expect,”
“intend,” “estimate,” “anticipate,” “will,” “project,” “plan” and
similar expressions in connection with any discussion of future
operating or financial performance. Any forward-looking statements
are and will be based upon the Company’s then-current expectations,
estimates and assumptions regarding future events and are
applicable only as of the dates of such statements. Readers are
cautioned not to put undue reliance on such forward-looking
statements.
Forward-looking statements in this press release are not guarantees
of future performance and involve risks and uncertainties,
including with respect to the Chapter 11 process, related
negotiations and hearings before the Bankruptcy Court, as well as
the COVID-19 crisis. Actual
results may differ materially from those projected in this press
release for numerous reasons, including factors outside of the
Company’s control. The Company expressly disclaims any obligation
to update or revise this press release, including any
forward-looking statements, whether as a result of new information,
future events or otherwise.
