Avanti Communications Group PLC (“Avanti”, the “Company” and, together with the firm's subsidiary undertakings, the “Group”) have announced:
• A completion of a strategic review of the firm, which includes termination of the formal sale process and end of offer period, in each case as defined in The City Code on Takeovers and Mergers (the "Code")
• The launch of a proposed refinancing that will fully fund the Company through the creation of $242 million of additional liquidity 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 percent of Avanti’s senior secured notes due 2019 (the “Existing Notes”) to fully underwrite the $130 million of new cash funding and consent to certain amendments and waivers to the Existing Indenture (as defined herein) necessary to implement the proposed refinancing
• The Launch of a consent solicitation and exchange offer (the “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 percent in aggregate principal amount of the Existing Notes (the “Requisite Consents”)
• Proposed Amendments (as defined herein) include creation of a new $132.5 million Super Senior Debt (as defined herein) basket which could be used in the near term to substantially reduce the Company’s interest cost
• Update on outlook
Paul Walsh, the Chairman, 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 HYL AS 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.”
