June 20, 2019 |
Colombia's Avianca will have to offer a premium to get investors to rollover $550m in 2020 bonds, following a recent ratings downgrade and a worsening business outlook, LatinFinance has heard.
"They are going to have to pay at least a 150bp premium," said a bonds banker in Bogotá.
After Fitch Ratings downgraded Avianca to B- from B, citing high debt levels and rising refinancing risks, the airline may have to look for other ways to pay the 8.375% notes due next May, rather than try to refinance
Colombian airline will likely offer investors a pickup of 150bp to rollover its 2020 notes after a recent downgrade, source says