Tuesday, 21 November 2017

Avanti raises $370m bond

Avanti Communications
Friday 27 September 13

Avanti Communications Group PLC (AIM: AVN, "Avanti" or the “Company"), the satellite data communications company, announces that it has successfully placed $370 million in Senior Secured Notes due 2019 with a coupon of 10% (the &ldquo…

Avanti Communications Group PLC (AIM: AVN, "Avanti" or the “Company"), the satellite data communications company, announces that it has successfully placed $370 million in Senior Secured Notes due 2019 with a coupon of 10% (the “Notes”).

The Notes provide Avanti with a significantly more flexible financing structure as well as extending its debt maturity profile to 2019. The net proceeds of the offering will be used primarily to refinance existing debt facilities.

Avanti is also pleased to announce that it has signed a Memorandum of Understanding with the European Space Agency in relation to the acquisition of the Artemis satellite for a nominal sum. This satellite, which has a minimum of a further three years of useful life, occupies an orbital position at 21.5 East and gives the Company access to new opportunities. The Artemis contract is subject to final approval by ESA.

Jefferies and UBS Investment Bank acted as Joint Global Co-Ordinators for the issue of the Notes. Avanti was advised by Rothschild.

David Williams, Chief Executive Officer, said:

“We are delighted to have entered the debt capital markets with our first bond issue which diversifies and increases the sources of funding available to the Company. The greater flexibility which the Notes provide will allow us to utilise our balance sheet more effectively and to respond to new opportunities. The Notes have no financial ratio covenant tests and greatly enhance our cashflow. We look forward to the completion of the Artemis transaction and the opportunities for growth that it provides."


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