BOGOTÁ, Colombia, Sept. 26, 2019 /PRNewswire/
-- Avianca Holdings S.A. (the "Company" or "Avianca")
(NYSE: AVH, BVC: PFAVH) announced today that the deadline for the
exchange offer of its US$ 550 million
bonds due May 2020 has been further
extended to October 10, 2019 from
September 25 as the Company continues
the administrative process of formalizing the necessary consents
from its counterparties in order to provide the collateral offered
in the Bond Exchange. The 12.78% of Bondholders who have not
tendered their bonds can now elect to tender until the new exchange
offer deadline.
Adrián Neuhauser, Avianca Holdings Chief Financial Officer,
commented: "We have made meaningful progress in achieving the
required consents and guarantees as we approach the final phase of
our bond exchange process. As always, we appreciate our bondholder,
shareholder and stakeholders' ongoing support as we expect to close
the transaction as soon as possible."
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.
United Airlines as well as Kingsland Holdings Limited have
confirmed that tenders of 87.22% of the aggregate principal amount
outstanding are sufficient to satisfy their requirement for the
exchange of these May 2020 bonds, and
in line with the previously announced offer to loan $250 million to Avianca Holdings. This loan
remains contingent upon certain other conditions currently being
met by Avianca Holdings, including certain commitments and waivers
made by other stakeholders.
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.