Avanti Communications has completed its strategic review and terminiated its formal sale process.
The company has also launched a proposed refinancing that will fully fund the company through the creation of $242 million of additional liquidity and through $130 million of new cash funding and up to $112 million of potential interest deferrals up to April 2018 and allow the company significant working capital to launch HYLAS 4 and grow into its capital structure.
– Agreement of holders representing approximately 73% of Avanti’s senior secured notes due 2019 to fully underwrite the $130 million of new cash funding and consent to certain amendments and waivers to the Existing Indenture necessary to implement the proposed refinancing
– Launch of a consent solicitation and exchange offer to effect the proposed amendments and waivers to the Existing Indenture, requiring the support of holders representing at least 90% in aggregate principal amount of the Existing Notes
– Proposed Amendments include creation of a new $132.5 million Super Senior Debt basket which could be used in the near term to substantially reduce the Company’s interest cost
Chairman Paul Walsh said: “Securing the underwriting of core bond investors to launch this major refinancing gives us a high degree of confidence that it will complete in January.
“After a turbulent year for Avanti, it is important for us to focus all of our attention on delivering outstanding services to our customers and preparing for the launch of HYLAS 4. This prized asset will more than double the revenue generating capacity of the fleet, bringing much needed extra capacity to mature markets in Western Europe and opening exciting new markets in West Africa.
“With the completion of coverage over EMEA it also makes Avanti the regional partner of choice of large multinational customers seeking a single service provider. We are grateful for the support of all our stakeholders and look forward to a more productive 2017.”
At 9:41am: (LON:AVN) Avanti Communications Group PLC share price was +1.88p at 22.88p
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