Avianca enters extended exchange of bond exchange offer

Avianca Holdings has announced it has extended the exchange deadline of its USD 550m bonds due May 2020 to October 10, 2019 from September 25, the company said.

The company continues to work on providing the guarantees offered to the bondholders to finalize the transaction.

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 USD 250 million to Avianca Holdings.

Avianca Holdings 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.

Kingsland Holdings Limited is a shareholder of Avianca Holdings, S.A. with 40 years of aviation experience.