Avianca Prices $650 Million USD in New Senior Secured Notes Due 2032

Avianca Group International Limited said on June 25 that its subsidiary Avianca Midco 2 PLC priced an offering of $650 million USD in aggregate principal amount of new 10.250% Senior Secured Notes due 2032, a step the Colombia-based airline group will use to refinance debt coming due in 2028 and lengthen its maturity profile.

The notes were priced on June 24, according to the company. Their terms and the collateral securing them are identical to those of Avianca’s existing 9.625% Senior Secured Notes due 2030 and 9.500% Senior Secured Notes due 2031.

Proceeds retire Avianca’s 9% 2028 notes, extending debt maturities

Avianca intends to use the net proceeds to redeem all of its outstanding 9.000% Senior Secured Notes due 2028 and all of its outstanding 9.000% Tranche A-1 Senior Notes due 2028, with the remainder going toward general corporate purposes that may include repaying other indebtedness in the future. The company said the transaction is meant to extend the maturity of its debt. The announcement does not constitute a redemption notice for the 2028 notes or the Tranche A-1 notes.

The offering is expected to close on July 7, subject to customary closing conditions.

The notes have not been registered under the US Securities Act of 1933 and may not be offered or sold in the US absent registration or an applicable exemption. They are being offered to qualified institutional buyers under Rule 144A and to certain non-US persons in offshore transactions under Regulation S.