Avianca Holdings S.A. Issues Statement on Debtor-in-Possession Financing
and Government of Colombia Financing Commitment
BOGOTA, Colombia, August 30, 2020 Avianca Holdings S.A. (OTCMKTS: AVHOQ, BVC: PFAVH) (the Company or
Avianca) today issued a statement regarding the Companys expected debtor-in-possession (DIP) financing, following the announcement by the
Republic of Colombias Ministerio de Hacienda y Credito Público (the Finance Ministry) that the management committee of the countrys Fondo de Mitigación de Emergencias (FOME, the Emergency Mitigation Fund) had
approved the governments participation in Aviancas DIP financing, through a commitment of up to US$ 370 million in the proposed loan structure, side by side with private market investors. Avianca commented as follows:
We are pleased that the Government of the Republic of Colombia will participate in the Companys DIP financing and express our gratitude
for the confidence and support this commitment demonstrates.
As we previously disclosed on August 13, 2020, Aviancas DIP loan
financing is expected to consist of two tranches that include approximately US$ 1.2 billion of new funds as part of a US$ 2.0 billion overall financing facility (including rollups of existing debt and purchase consideration) which will
allow the Company to finance its operations during the pendency of its Chapter 11 reorganization. In addition to the Colombian government committing to participate in the DIP loan -by providing approximately
30% of the new funds, or 20% of the total DIP financing- we are also very pleased with the positive reception the DIP loan structure has received from third-party institutional investors that, along with existing lenders, are expected to provide a
substantial majority of the DIP loan financing.
Based upon the substantial indications of interest received to date, we are confident in
our ability to complete the syndication process and finalize documentation within the next week. We look forward to filing shortly thereafter a motion to approve the financing with the U.S. Bankruptcy Court, which motion will set forth our full
DIP financing package, with approval expected during the month of September. The DIP loan, which will be secured by Aviancas key assets (including the Companys ownership stakes in its LifeMiles and cargo subsidiaries, as well as by
its key brands and cash accounts) will contain certain conditions precedent to be satisfied prior to drawing those funds.
Additional information about
the DIP financing is available on Aviancas website (www.aviancaholdings.com).
About Avianca Holdings S.A. (OTCMKTS: AVHOQ) (BVC: PFAVH)
Avianca is the trademark for the group of passenger airlines and cargo airlines under the holding company Avianca Holdings S.A. Avianca has been flying
continuously for 100 years. As of December 2019, the Company operated a fleet of 158 aircraft and served 76 destinations in 27 countries within the Americas and Europe. With more than 21,000 employees, the Company earned US$ 4.6 billion in 2019
and carried 30.5 million passengers.
Forward-Looking Statements
Avianca has included statements in this press release that constitute forward-looking statements. As a general matter, forward-looking statements
are those focused on future or anticipated events or trends, expectations, and beliefs including, among other things, the Companys expectations with respect to its Chapter 11 proceedings, the airline industry and the impacts of COVID-19. Such statements are intended to be identified by words such as believe, expect, intend, estimate, anticipate, will,
project, plan and similar expressions in connection with any discussion of future operating or financial performance. Any forward-looking statements are and will be based upon the Companys then-current expectations,
estimates and assumptions regarding future events and are applicable only as of the dates of such statements. Readers are cautioned not to put undue reliance on such forward-looking statements.