Refinancing 20 December 2016

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.

20 December, 2016

This announcement contains Inside Information

For immediate release


 

Avanti Communications Group plc

$242 million refinancing fully funding the Company and completion of strategic review

 


 

Highlights

Avanti Communications Group PLC (“Avanti”, the “Company” and, together with its subsidiary undertakings, the “Group”) today announces:

– Completion of its strategic review, which includes termination of the formal sale process and end of offer period, in each case as defined in The City Code on Takeovers and Mergers (the “Code“)

– Launch of a proposed refinancing that will fully fund 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 and allow the Company significant working capital to launch HYLAS 4 and grow into its capital structure

– Agreement of holders representing approximately 73% of Avanti’s senior secured notes due 2019 (the “Existing Notes”) to fully underwrite the $130 million of new cash funding and consent to certain amendments and waivers to the Existing Indenture (as defined herein) necessary to implement the proposed refinancing

– Launch of a consent solicitation and exchange offer (the “Consent Solicitation and Exchange Offer”) to effect the proposed amendments and waivers to the Existing Indenture, requiring the support of holders representing at least 90% in aggregate principal amount of the Existing Notes (the “Requisite Consents”)

– Proposed Amendments (as defined herein) include creation of a new $132.5 million Super Senior Debt (as defined herein) basket which could be used in the near term to substantially reduce the Company’s interest cost

– Update on outlook

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