#None #Senior Secured Notes #Avianca Group #Debt Refinance

Avianca Group's Strategic Financial Initiative

On June 24, 2026, Avianca Group International Limited made a significant financial move by pricing its new aggregate principal amount of $650 million in 10.250% Senior Secured Notes due in 2032. This strategic initiative is not just about raising capital but is intricately tied to the company's overall debt management strategy.

The offering will be conducted through its subsidiary, Avianca Midco 2 PLC, and the terms of these new notes mirror those similar to previously issued notes. Specifically, they align with the 9.625% Senior Secured Notes maturing in 2030 and the 9.500% Senior Secured Notes due in 2031, showcasing a consistent approach towards maintaining an efficient debt profile.

Purpose of the Offering

One of the primary objectives behind this notes offering is to utilize the proceeds to redeem existing debts. Avianca Group plans to retire its outstanding 9.000% Senior Secured Notes that are due in 2028, alongside the 9.000% Tranche A-1 Senior Notes scheduled for the same due date. This move is expected to aid in extending the maturity of its debt obligations, thereby stabilizing its financial standing for the future.

As the aviation industry continues to recover post-pandemic, effective debt management is increasingly vital. In light of this, the new offering, while significant, does not serve as a redemption notice just yet for the existing notes, signaling a careful and calculated financial approach.

Expected to close on July 7, 2026, pending standard closing conditions, the notes have not been registered under the U.S. Securities Act of 1933. This aspect places restrictions on their sale within the United States unless proper registration protocols are followed. Instead, these notes will be offered primarily to qualified institutional buyers and select non-U.S. persons in offshore transactions.

Future Outlook

This announcement comes amid ongoing efforts by Avianca Group to manage its finances effectively. It marks a moment of anticipation regarding the company’s ability to navigate its debt landscape adeptly while laying foundations for potential future growth. As Avianca Group continues to evolve, further offerings of this nature could be witnessed to bolster its financial strategy.

The forward-looking statements regarding the company’s expectations towards its financial outlook suggest an optimistic view, even amidst uncertainties the industry might face. Words like **