August 15, 2019 |
Colombian airline asks to exchange $550m in 2020 notes for 2023 bonds
Colombia's Avianca said it has asked investors to exchange $550m in unsecured 8.375% 2020 notes for the same amount in 9% 2023 notes.
Bondholders who swap their notes by the early deadline on August 27 will receive an even exchange. After that, they will get $950 for every $1,000 in existing notes through the final deadline on September 11, the airline said in a statement.
Avianca said it will use roughly $1bn in aircraft as collateral for the new notes. Avianca shareholders United Airlines and Kingsland Holdings will provide a loan for at least $200m as part of the deal, while one or more banks will supply $50m.