Avianca increases expiration and early participation deadline for senior notes

victoria@aviationnews-online.com
By victoria@aviationnews-online.com October 31, 2019 10:03

Avianca increases expiration and early participation deadline for senior notes

Avianca Holdings is extending the expiration deadline and early participation deadline by two days for its pending offer to exchange any and all of its existing 8.375% senior notes due 2020 for new 8.375% senior secured notes due 2020.

Adrian Neuhauser, chief financial officer of Avianca, said: “With this last extension, we expect this will be the final opportunity for holders of the existing notes to participate in the exchange offer before it expires.”

Avianca has also announced $484.4 million aggregate principal amount of existing notes, representing approximately 88.1% of the total outstanding principal amount of the existing notes, had been validly tendered for exchange and not validly withdrawn, as confirmed by the information agent for the exchange offer.

Earlier this week, reports suggested that Colombia’s Avianca Airlines is looking to gain a codeshare agreement with Brazilian low-cost airline GOL.

A partnership between the two airlines would allow Avianca to expand its South American network, just as the airline did when it announced a codeshare agreement with fellow Brazilian airline Azul

Tying up with Brazilian airlines gives Avianca a way back into Brazil following the bankruptcy of Avianca Brazil – which left the Star Alliance network of airlines on 1 September.

Elsewhere, a proposed joint venture between United Airlines, Colombia’s Avianca Holdings and Panama’s Copa Holdings has been delayed.

The decision for the delay is due to the potential inclusion of a fourth partner. 

Reports have suggested that last week, United Airlines wants to include Azul in the deal – an airline which it already has a stake in. 

In November 2018, the three airlines said they would file for US antitrust approval “in the near term” in order to coordinate routes between South America and the United States with the carriers aiming to implement the agreements in 2020. 

Now almost a year after its proclamation, no deal has been announced. 

The potential inclusion of Azul, which may be in the early stages of negotiations, has been one reason for the timetable slipping. 

Azul has been the only one to comment on any delay, saying it is “always looking for opportunities with its partners.”

victoria@aviationnews-online.com
By victoria@aviationnews-online.com October 31, 2019 10:03