#Colombia #Bogota #Exchange Offer #Senior Secured Notes #Avianca Group

Avianca Group Expands Exchange Offer Proposal

Avianca Group International Limited recently announced an enhancement to its ongoing exchange offer for its 9.000% Tranche A-1 Senior Secured Notes, which are set to mature in 2028. This initiative is spearheaded by the company's subsidiary, Avianca Midco 2 PLC and comes as the group seeks to optimize its financial obligations through refinements in its offer strategy.

On January 14, 2025, the original proposal outlined a straightforward exchange of outstanding senior secured notes for newly issued equivalents. The company has now supplemented this memorandum to include significant updates and additional information, which aims to clarify previous communications and ensure transparency with involved stakeholders.

What Does the Supplement Include?

The recent supplement to the exchange offer provides a comprehensive overview, including updated appraisal reports that supersede the prior versions found in the original memorandum. The adjustments aim to enhance the clarity and completeness of the offer, addressing concerns and questions that have emerged since the initial announcement.

While key terms such as the expiration dates and the financial considerations of the exchange remain unchanged, the amendment ensures that all eligible holders of the outstanding notes are fully informed. This move underscores Avianca's commitment to maintaining open lines of communication with its investors, particularly as the aviation industry navigates the ongoing economic challenges.

Eligibility and Participation

To participate in this amended exchange offer, holders of the existing notes must certify their eligibility, primarily focusing on institutional buyers defined under U.S. regulations. This exchange offer is tailored to ensure compliance with all relevant financial laws, as the newly issued notes will not be registered under the U.S. Securities Act. Thus, they are available only to qualified institutional buyers and offshore investors who meet specific criteria.

For those who have already tendered their notes in accordance with the original proposal, no further action is required post-supplement publication. They can rest assured that their submissions are still valid under the amended terms of the exchange.

Next Steps for Holders

In light of the nuanced details provided with this supplement, current note holders are strongly encouraged to review the amended memorandum thoroughly. Doing so will enable them to make well-informed decisions regarding their investments in light of the evolving conditions in the financial landscape.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., and J.P. Morgan Securities LLC are the designated lead dealers and solicitation agents for this exchange offer, providing professional guidance and resources to facilitate a smooth transition for affected parties.

For further inquiries or to request an in-depth copy of the supplemented documents, existing note holders can contact the information and exchange agent, D.F. King & Co. at their designated contact lines.

Conclusion

Avianca Group's decision to enhance its exchange offer reflects its adaptive financial strategy and responsive governance in managing investor relations. By supplementing their exchange offer with up-to-date information, Avianca not only fosters investor confidence but also reinforces its position within the aviation sector as it restores stability and growth after recent market disruptions.