Satnews Daily
December 21st, 2016

Avanti Communications Group PLC Goes For a Refi & Not A Sale

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.”