August 16, 2019 |
Investors are likely to participate in a bond swap by the Colombian airline Avianca, but they have questions about a proposed loan that comes with it.
Avianca asked bondholders on Wednesday to exchange $550m in 8.375% 2020 notes for 9% 2023 notes, putting up roughly $1bn in aircraft as collateral.
The airline said it will receive $250m in loans, including $200m from shareholders United Airlines and Kingsland Holdings, if the bond swap is successful.
"Overall, I see this is a credit-positive deve
United and Kingsland have not said how many investors have to participate to unlock a $200m loan