Investors often ask questions about Avanti’s bonds. Please see below for some frequently asked questions and the answers to them.
What bonds has Avanti issued?
Avanti issued $370m of bonds in September 2013. This was followed by further planned tranches in June 2014 ($150m) and August 2015 ($125m). A refinancing was implemented in January 2017 under which the existing bonds were bifurcated into 2021 Notes and 2023 Notes, additional funding being made available to 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. Avanti is currently nearing the end of a further major restructuring that will result in some $557 million of its 2023 Notes converted into equity and the terms of its 2021 Notes amended (including the coupon and the term of the Notes which will be extended by one year to 2022).
Why have these bonds been issued in US$?
The US$ is Avanti’s functional currency. Due to its focus on high growth markets in Africa and the Middle East, where satellite services are paid for in dollars, Avanti receives the largest part of its revenue in US$. Avanti’s capital expenditure is also mainly paid in US$.
Why did Avanti issue bonds?
Avanti is building a satellite fleet that culminated recently in the successful launch of HYLAS 4. The issuance of bonds refinanced the Company’s existing ECA financing and enabled Avanti to finance the construction, launch and insurance of HYLAS 4.
Where are the bonds listed and traded?
Avanti’s bonds are listed on the Irish Stock .
What is the rating on the bonds?
Avanti’s bonds are not currently rated.
What is the coupon on the bonds?
The coupon on Avanti’s 2022 Notes will be 9%/9% (cash and PIK).
Where can I find the latest market price of the bonds?
US regulations stipulate that trading prices of bonds are made public. You can see these here
When do the bonds mature?
Post restructuring, Avanti’s bonds will mature in 2022.
Further to the Successful Consent Solicitation and Exchange Offer announced 20 December 2016 (see here for more information), Avanti Communications Group plc publishes IRS Forms 8937 in respect of CUSIPs 05351LAA5 and 05351LAE7:
Further to the Successful Consent Solicitation announced 17 October 2016 (see here for more information), Avanti Communications Group plc publishes IRS Forms 8937 in respect of CUSIPs 05351LAA5 and 05351LAD9: