Avianca Group Finalizes US$600 Million Offering of Senior Secured Notes for 2031

Avianca Group Secures $600 Million in Senior Secured Notes

On January 13, 2026, Avianca Group International Limited proudly announced the pricing of a significant offering of $600 million in new 9.500% Senior Secured Notes set to mature in 2031. This key financial maneuver was conducted through its subsidiary Avianca Midco 2 PLC. The new notes are aligned in terms of collateral with the company’s existing 9.625% Senior Secured Notes maturing in 2030.

Purpose and Plans for Proceeds

The proceeds from this note issuance are strategically intended for a couple of important financial objectives. First, a portion of the raised funds will be allocated to redeem certain existing debts, specifically targeting the 9.000% Senior Secured Notes due in 2028. This approach is poised to effectively manage and extend the company's debt maturity profile. The remainder of the proceeds will serve general corporate purposes which will bolster Avianca's operational flexibility and financial stability.

It is important to highlight that this announcement does not equate to a formal redemption notice for the 2028 Notes, indicating a careful approach to managing existing obligations while positioning the company favorably for the future.

Details on the Offering

The anticipated consummation of this offering is slated for January 28, 2026, contingent upon specific closing conditions. Furthermore, it’s critical to note that these notes have neither been registered nor will they be registered under the U.S. Securities Act of 1933, which means they will not be available for public sale in the United States unless an exemption from registration requirements applies. Instead, these notes are primarily targeted at qualified institutional buyers through a private placement, aiming to engage suitable investors who can support this financial venture.