Avanti Communications Group Plc Completion of Refinancing (2633V)

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RNS Number : 2633V

Avanti Communications Group Plc

27 January 2017

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

This announcement contains Inside Information

For immediate release

Avanti Communications Group plc

Announces Completion of Refinancing

27 January 2017

Avanti Communications Group plc (the "Company") today announces the completion of its previously announced $242.0 million refinancing, with the settlement of its (1) consent solicitation (the "Consent Solicitation") to permit, among other things, the incurrence of up to $132.5 million in super senior indebtedness and the payment of PIK interest on its 10% Senior Secured Notes due 2019 (the "Existing Notes") in lieu of cash for certain future interest payments due on the Existing Notes, (2) offer to holders of its Existing Notes the opportunity to purchase up to $132.5 million aggregate principal amount of 10%/15% Senior Secured Notes due 2021 (the "PIK Toggle Notes") (the "New Money Offer") and (3) offer to holders participating in the New Money Offer to exchange a portion of their Existing Notes for additional PIK Toggle Notes.

Through the successful completion of the Consent Solicitation and the New Money Offer, the Company will have received $80.0 million of new cash funding, with an additional $50.0 million of funding available on a delayed draw basis, and will have the ability to defer up to $112.0 million of future interest payments through April 2018. This additional liquidity will provide the Company with significant working capital to launch HYLAS 4 and grow its capital structure.

David Williams, Chief Executive Officer of the Company, said "Avanti is grateful for the support of its investors and all stakeholders in completing the financing which supports the launch of HYLAS 4 this year. We can now focus all of our energies on the delivery of market-beating service to a growing list of international telecoms customers."

Important Notices

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.

Enquiries:

 
 Avanti Communications       David Williams, Nigel Fox 
  Group plc                   Tel: [phone] 
 Cenkos Securities (Nomad)   Max Hartley, Nicholas Wells 
                              Tel: [phone] 
 

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January 27, 2017 02:00 ET (07:00 GMT)