BOGOTÁ, Colombia, Sept. 26, 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 10, 2019 from September 25 as the Company continues the administrative process of formalizing the necessary consents from its counterparties in order to provide the collateral offered in the Bond Exchange. The 12.78% of Bondholders who have not tendered their bonds can now elect to tender until the new exchange offer deadline.

Adrián Neuhauser, Avianca Holdings Chief Financial Officer, commented: "We have made meaningful progress in achieving the required consents and guarantees as we approach the final phase of our bond exchange process. As always, we appreciate our bondholder, shareholder and stakeholders' ongoing support as we expect to close the transaction as soon as possible."

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

United Airlines as well as Kingsland Holdings Limited have confirmed that tenders of 87.22% of the aggregate principal amount outstanding are sufficient to satisfy their requirement for the exchange of these May 2020 bonds, and in line with the previously announced offer to loan $250 million to Avianca Holdings. This loan remains contingent upon certain other conditions currently being met by Avianca Holdings, including certain commitments and waivers made by other stakeholders.

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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SOURCE Avianca Holdings S.A.

Copyright 2019 PR Newswire

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