Questions surround Avianca bond swap

Questions surround Avianca bond swap

Bonds Debt Capital Markets Fixed Income Loans Colombia US

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 d

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