Avianca closes in on United loan

Avianca closes in on United loan

Loans Bonds Debt Capital Markets Corporate & Sovereign Strategy Fixed Income Colombia US

Colombia's Avianca Holdings is closer to getting a loan for up to $200m from shareholder United Airlines as the deadline for a bond swap draws near, LatinFinance has heard.

"They are getting close to obtaining enough investor participation to obtain the loan," said a banker who is working on the proposed $550m debt exchange. The banker did not reveal the participation threshold for United to unlock the loan.

Avianca has extended the deadline to September 11 for bondholders to swap the airline's 8.375% 2020 notes for 9% 2023 notes. 

Kingsland Holdings, another shareholder in Avianca, said on Friday that it has granted a short-term loan for $50m.

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