Avianca Holdings Extends Bond Exchange Offer Participation Deadline

10/10/2019 16:06

BOGOTÁ, Colombia, Oct. 10, 2019 /PRNewswire/ -- Avianca Holdings S.A. (the "Company" or "Avianca") (NYSE: AVH, BVC: PFAVH) announced today that the deadline for the exchange offer of its US$ 550 million bonds due May 2020 has been further extended to October 24. As of today, a total of 87.45% of bonds has been validly tendered.

The process of obtaining the necessary third-party consents to consummate the Exchange Offer and Consent Solicitation has been progressing well. Avianca Holdings' Chief Financial Officer, Adrian Neuhauser, commented: "We are finalizing the steps necessary to close the transaction, and expect that this will be final extension. The high level of participation that we have already achieved in the exchange offer, together with the announcement of our agreement with United Airlines and Kingsland Holdings regarding the conditions of the US$ 250 million stakeholder loan, represent key milestones towards the successful completion of our debt reprofiling program, allowing us to move forward with the Avianca 2021 plan."

All tendering bondholders will receive secured notes as described in the exchange offer memorandum. Such notes will automatically exchange for new notes with a 3-year extended maturity and a 9% coupon, upon completion of the US$ 250 million financing led by United Airlines and Kingsland Holdings Limited in Avianca.

About Avianca Holdings:

Avianca is the commercial brand for the collection of passenger airlines and cargo airlines under the umbrella company Avianca Holdings S.A. Avianca has been flying uninterrupted for 100 years. With a fleet of 175 aircraft, Avianca serves 76 destinations in 27 countries within the Americas and Europe. With more than 21,000 employees, the Company earned US$4.8 billion in 2018 and transported 30.5 million passengers. On February 22, 2019, Avianca Holdings, S.A. announced its corporate transformation plan consisting of four key pillars: 1) the improvement of operational indicators, 2) fleet adjustments, 3) the optimization of operational profitability and 4) repositioning of non-strategic assets. Last May 24th, control of the Company was assumed by Kingsland Holdings Limited, an independent third party of United Airlines.

About Kingsland:

Kingsland Holdings Limited is a shareholder of Avianca Holdings, S.A. with 40 years of aviation experience. Kingsland is chaired by Roberto Kriete, who has been part of the Board of Directors of Avianca Holdings S.A. since 2010. He was the founder of Volaris, a pioneer of TACA and president of the Latin American Air Transport Association.

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