RNS For immediate release
Avanti Communications Group plc
Announces new $100 Million Super Senior Facility at 7.5%
16 June 2017
Avanti Communications Group plc (the "Company") today announces that it has entered into a facility agreement with HPS1 which will provide a $100 million three-year super senior facility (the "Super Senior Facility"). The proceeds from the Super Senior Facility replaces an existing undrawn higher cost $50m debt facility and provides $50m additional new liquidity and will be used to complete the construction and launch of the Company's HYLAS 4 satellite and, subject to certain conditions, may be used to redeem or repurchase some of the Company's outstanding high yield notes. The interest rate is 7.5% p.a, versus a rate of over 10% p.a. on the facility that is being replaced.
In order to incur the Super Senior Facility, the Company has received sufficient consents from holders of its outstanding notes to certain amendments to the indentures governing the notes and the intercreditor agreement, including amendments to the EBITDA financial covenant such that the first testing date is to be moved from 30 June 2017 to 31 March 2018 and the thresholds are to be lowered.
The Super Senior Facility will close upon execution of the necessary documents which the Company expects to occur on or around 21 June 2017. Upon the incurrence of the Super Senior Facility, the Company will cancel all outstanding commitments for holders of its 2021 PIK Toggle Notes to purchase delayed draw notes on 30 June 2017 and 30 November 2017.
Paul Walsh, Chairman of the Company, said "This transaction is a positive step for the Company to lower its cost of capital with a prominent global investor and provide additional headroom in a crucial period with the launch of HYLAS 4 pending and customer demand for our products recovering."
This announcement contains inside information
This announcement is for information purposes only and is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities whether pursuant to this announcement or otherwise. The distribution of this announcement in jurisdictions outside the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about, and observe such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities law of any such jurisdiction.
In particular, this announcement is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the United States Securities Act of 1933. Any securities mentioned herein have not been and will not be registered under the United States Securities Act of 1933, and no public offering will be made in the United States.
For further information please contact:
+44 (0)203 770 7909
44 (0)207 382 4763
Cenkos Securities plc
+44 (0) 20 7397 8900
Notes to Editors
About Avanti Communications
Avanti connects people wherever they are - in their homes, businesses, in government and on mobiles. Through the HYLAS satellite fleet and more than 180 partners in 118 countries, the network provides ubiquitous internet service to a quarter of the world's population. Avanti delivers the level of quality and flexibility that the most demanding telecoms customers in the world seek.
Avanti is the first mover in high throughput satellite data communications in EMEA. It has rights to orbital slots and Ka-band spectrum in perpetuity that covers an end market of over 1.7bn people.
The Group has invested $1.2bn in a network that incorporates satellites, ground stations, datacentres and a fibre ring. Avanti has a unique Cloud based customer interface that is protected by patented technology.
Avanti Communications is listed in London on AIM (AVN:LSE).
HPS Investment Partners, LLC ("HPS") is a leading global investment firm with a focus on non-investment grade credit. Established in 2007, HPS has approximately 100 investment professionals and over 200 total employees, and is headquartered in New York with ten additional offices globally. HPS was originally formed as a unit of Highbridge Capital Management, LLC, a subsidiary of J.P. Morgan Asset Management, and formerly known as Highbridge Principal Strategies, LLC. In March 2016, the principals of HPS acquired the firm from J.P. Morgan, which retained Highbridge's hedge fund strategies. As of March 2017, HPS has approximately $39 billion of assets under management.
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