Avianca Holdings Successfully Closes Its 2020 Bond Exchange Offer

BOGOTÁ, Colombia, Nov. 1, 2019 /PRNewswire/ -- Avianca Holdings S.A. (the "Company" or "Avianca") (NYSE: AVH, BVC: PFAVH) announced today that it has successfully closed the Bond Exchange Offer of its US$ 550 million bonds, which mature in May 2020, with a total of 88.1% of bonds validly tendered.

All participating bondholders will receive secured notes as described in the exchange offer memorandum. Such notes will automatically exchange for new notes with a maturity which has been extended until 2023 and a 9% coupon, upon completion of the US$ 250 million stakeholder loan.

Adrian Neuhauser, Avianca Holdings' CFO commented: "We are very pleased with the successful closure of our Bond Exchange offer as it reaffirms our investors' confidence in the plan which we have set forth for the Company. We remain focused on completing the subsequent milestones to successfully conclude the reprofiling program as expeditiously as possible."

"United congratulates Avianca Holdings on the successful closure of its bond exchange. As one of the most important steps in their plan, we are excited to see this achievement," said John Gebo, United's Senior Vice President of Alliances. "We look forward to Avianca following today's great step by completing its remaining milestones and agreements and moving forward with the Avianca 2021 Plan."

"We are very pleased by the success of the bond exchange achieved by Avianca's new management team. It is an important indication of the market's confidence in the Avianca 2021 plan set forth by Anko, Adrian, and the team," added Roberto Kriete, Avianca's Chairman of the Board. "Profound and important changes are taking place at Avianca, and we thank our customers, partners, and all of our stakeholders for their continued support throughout this process."

About Avianca Holdings:
Avianca is the commercial brand for the collection of passenger airlines and cargo airlines under the umbrella company Avianca Holdings S.A. Avianca has been flying uninterrupted for 100 years. With a fleet of 175 aircraft, Avianca serves 76 destinations in 27 countries within the Americas and Europe. With more than 21,000 employees, the Company earned US$4.8 billion in 2018 and transported 30.5 million passengers. On February 22, 2019, Avianca Holdings, S.A. announced its corporate transformation plan consisting of four key pillars: 1) the improvement of operational indicators, 2) fleet adjustments, 3) the optimization of operational profitability and 4) repositioning of non-strategic assets. Last May 24th, control of the Company was assumed by Kingsland Holdings Limited, an independent third party of United Airlines.

About Kingsland:
Kingsland Holdings Limited is a shareholder of Avianca Holdings, S.A. with 40 years of aviation experience. Kingsland is chaired by Roberto Kriete, who has been part of the Board of Directors of Avianca Holdings S.A. since 2010. He was the founder of Volaris, a pioneer of TACA and president of the Latin American Air Transport Association.

SOURCE Avianca Holdings S.A.