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 additional funding was made available to the Company through the creation of $242 million of additional liquidity through $130 million of new cash funding and up to $112 million of potential interest deferrals up to April 2018.
Why have these bonds been issued in US$?
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 is expected to deliver $500m of EBITDA per annum once it reaches maturity. The Group is financed approximately equally through debt and equity. This is a conservative financing structure that is expected to maximise the long-term returns that equity holders receive.
Where are the bonds listed and traded?
Avanti’s bonds are listed on the Irish Stock Exchange and are traded by market makers such as Jefferies, Credit Suisse and Imperial Capital.
What is the rating on the bonds?
Avanti’s bonds are rated by Moody’s and Standard & Poor’s. Their respective ratings are Caa1 and B. The Standard and Poor’s rating of B is currently two notches above the Moody’s rating. The rating was re-affirmed on 26th February and placed on RatingsWatch pending confirmation of the expected revenue growth and liquidity improvements.
What is the coupon on the bonds?
The coupon on all tranches of Avanti’s bonds is 10/15% and 12/17.5%
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?
Avanti’s bonds mature in 2021 and 2023.
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: