TIDMAVN
RNS Number : 3194W
Avanti Communications Group Plc
18 August 2015
18 August 2015
AVANTI COMMUNICATIONS GROUP PLC
Completion of HYLAS 4 satellite financing
Avanti Communications Group plc ("Avanti"), a leading provider
of satellite data communications services in Europe, the Middle
East and Africa ("EMEA"), announces the completion of financing for
its HYLAS 4 satellite, in line with the previously announced
financing plan.
Avanti has successfully placed $125m in Senior Secured Notes due
2019 (the "Notes") under the Company's existing indenture. The
Notes will be issued at a small discount to the current trading
price of Avanti's existing notes and will have a coupon of 10%.
The investor group was led and managed by MAST Capital
Management, LLC, a Boston-based investment firm.
HYLAS 4 remains on-track for launch in early 2017 and will
complete Avanti's coverage of EMEA. The majority of the satellite's
capacity will serve high-growth markets in Africa. The Company
expects that this will consolidate its first mover advantage across
EMEA, and enhance the future cash generation potential of the
Group.
In addition, Avanti has also simultaneously conducted an equity
capital raising (the "Capital Raising"). Avanti has issued
3,592,781 new ordinary shares (the "New Ordinary Shares") of 1p
each ("Ordinary Shares") at a price of 200.65p per New Ordinary
Share, to raise approximately GBP7.2m ($11.3m) (net of expenses) in
order to satisfy demand from bond investors.
The Capital Raising has been conducted under the Company's
existing shareholder authorities to allot new Ordinary Shares for
cash on a non-pre-emptive basis. The issue price of 200.65p
represents a discount of 4.0% to the closing middle market price of
209.00p per existing Ordinary Share on 17 August 2015, the last
dealing day prior to this announcement.
Application has been made to the London Stock Exchange for the
New Ordinary Shares to be admitted to trading on AIM ("Admission").
The New Ordinary Shares will represent approximately 2.47% of
Avanti's issued Ordinary Share capital immediately following
Admission. It is expected that Admission will become effective and
that dealings in the New Ordinary Shares will commence on AIM at
8.00 a.m. on 21 August 2015. The Notes will be issued on the same
day.
Following the Admission, the total number of Ordinary Shares
with voting rights admitted to trading on AIM will be 145,396,350.
The New Ordinary Shares will rank pari passu in all respects with
Avanti's existing Ordinary Shares in issue. Avanti does not hold
any Ordinary Shares in treasury.
The above figure of 145,396,350 Ordinary Shares may be used by
shareholders in Avanti as the denominator for the calculations by
which they will determine if they are required to notify their
interest in, or a change to their interest in, the share capital of
Avanti, under the Financial Conduct Authority's Disclosure and
Transparency Rules.
Peter Reed, Partner and Portfolio Manager, MAST Capital
Management, LLC said: "We have long admired Avanti's business and
its management team. The completion of the financing for the HYLAS
4 satellite is an exciting and important milestone for the Company
and we are pleased to play a leadership role in the satellite's
development by investing $125 million into newly issued notes and
shares."
David Williams, Avanti Chief Executive, said, "Today's funding
for HYLAS 4 enables us to complete our coverage of EMEA in early
2017. Avanti now offers more High Throughput Satellite capacity to
its telco customers in Africa than any other satellite operator,
enabling us to build strong partnerships for the long term.
Millions of people and businesses in Africa don't have to wait for
tomorrow, Avanti delivers superfast broadband today."
For further information please contact:
Avanti: Matthew Springett, +44 (0)207 749 6703
Montfort: Nick Miles / James Olley, +44 (0)203 770 7909
Cenkos Securities: Max Hartley (Nomad) / Julian Morse, +44
(0)207 397 8900
Redleaf: Hannah Nicolas, +44 (0)207 382 4734
MAST: Steve Bruce or Taylor Ingraham, ASC Advisors, +1 203 992
1230
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 150 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.
The Group has three satellites in orbit and a further two fully
funded satellites under construction.
Avanti Communications is listed in London on AIM (AVN:LSE).
www.avantiplc.com
About MAST
Founded in 2002, MAST Capital Management, LLC is an
SEC-registered investment advisor that specializes in event-driven
and credit investments, focusing predominantly on middle market
opportunities. Currently, MAST manages and sub-advises
approximately $1.2bn for sophisticated institutional and family
office investors globally. The Boston-based Firm is employee-owned
with a minority stake held by Dyal Capital Partners, a subsidiary
of Neuberger Berman.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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