Avianca Holdings completes funding of USD 250m in convertible loans

Avianca Holdings S.A. has announced it renegotiated substantially all of its debt and lease obligations and reached agreements with its key suppliers, resulting in the completion of the funding of USD 250 million in mandatorily convertible loans, the company said.

Avianca reached broad agreement with its creditors, allowing it to comply with key conditions precedent for funding of the Convertible Loans by United and Kingsland. In turn, the funding of the Convertible Loans allowed Avianca´s agreements with its creditors to go effective, reprofiling substantially all of its loans and aircraft lease obligations.

Avianca received the previously-announced USD 250 million of committed financing from United and Kingsland. This financing consists of USD 250 million of Convertible Loans that mature in four years and with a 3% payment-in-kind (PIK) annual interest rate. United funded USD 150 million and Kingsland funded USD 100 million. United and Kingsland´s Convertible Loans are convertible into the Company´s equity (common shares or preferred shares at the lenders´ option).

Avianca is the commercial brand for the collection of passenger airlines and cargo airlines under the umbrella company Avianca Holdings S.A. 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 USD 4.8 billion in 2018 and transported 30.5 million passengers.

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

Together, United Airlines and United Express operate approximately 4,900 flights a day to 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. The airline operates 788 mainline aircraft and the airline´s United Express carriers operate 560 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines.