Avianca commences offer to exchange secured notes for unsecured notes

Colombia-based Avianca Holdings S.A. has announced the commencement of an offer, outside of Colombia, to exchange any and all USD 550 million of its existing 8.375% Senior Notes due 2020 for up to USD 550 million of new 8.375% Senior Secured Notes due 2020, the company said.

Concurrently with the Exchange Offer, the company is soliciting consents to certain proposed amendments and waivers with respect to restrictive covenants, events of default and other provisions in the indenture governing the Existing Notes. The Exchange Offer and Consent Solicitation are being made pursuant to the terms and subject to the conditions as set forth in an Offering Memorandum and Consent Solicitation Statement dated August 14, 2019.

Eligible Holders of Existing Notes who validly tender (and do not validly withdraw) Existing Notes prior to 11:59 p.m. New York City time, on August 27, 2019 will be eligible to receive, for each USD 1,000 principal amount of Existing Notes tendered, USD 1,000 principal amount of Exchange Notes, which includes the Early Participation Premium of USD 50 in principal amount of Exchange Notes per USD 1,000 principal amount of Existing Notes.

The Exchange Notes will be secured by a pledge, mortgage or assignment of the AVIANCA brand and certain other intellectual property, certain unencumbered aircraft which are currently owned by certain subsidiaries of Avianca and the residual interest in substantially all aircraft which are owned and financed now or in the future by Avianca and its subsidiaries,

Avianca Holdings S.A. is the commercial brand that identifies the passenger, cargo transportation airlines and on ground services integrated in the Company with a team of more than 21,000 employees.