March, 2020- Alcogal, Panamanian Capital Markets Lawyers, advised BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC as the dealer managers of the exchange operation of senior bonds due in 2020 of up to US$550,000,000, issued by Avianca Holdings, S.A. which aimed, among other benefits, to exchange such bond for a new guaranteed bond which expires on 2023, to reprofile the company´s passives and achieve the payments of additional financings which allow the improvement of their operations and performance.

The transaction closed in November 2019.

Avianca Holdings S.A., is a company registered in Panama which was created as a result of the merger between Colombia’s Avianca and Salvadoran Taca, issued senior bonds guaranteed in the international market for 550 million dollars with a coupon rate of 8.375% and maturity in 2020. The securities ​​will be granted to the company’s senior bondholders, as part of a senior bond exchange operation jointly issued by Avianca Holdings, Grupo Taca Holdings and Avianca Leasing.

 The exchange notes are guaranteed by a promise or assignment of the Avianca brand and other intellectual property registered in different jurisdictions, including Panama; certain untaxed aircraft that are currently directly owned or in trust for the benefit of Tampa Cargo or by Aerovías of the American Continent – Avianca (Aerovías) and the residual share in virtually all aircraft that are owned and financed now or in the future by Avianca Holdings and its subsidiaries.
The newly issued guaranteed bonds will be automatically exchanged for new bonds with an extended maturity until 2023 and a 9% coupon.

Partner Arturo Gerbaud, together with senior associates Rafael Marquínez and Rita de la Guardia, participated in the transaction.

About Avianca Holdings

Avianca is the commercial brand that identifies the passenger, cargo transportation airlines and on ground services integrated in the Company with a team of more than 21,000 employees. The terms “Avianca Holdings” or “the Company” refer to the consolidated entity. It also has the LifeMiles™ loyalty program and related activities including tourism, engineering, maintenance and specialized maintenance services.

In November 2013, the holding company firmly entered the international capital market on the New York Stock Exchange.

Alcogal – Panamanian Capital Markets Lawyers

Alcogal advises many of the world’s largest and most sophisticated financial institutions on a full-range of banking, securities and related regulatory matters in the Republic of Panama.

Our Panamanian Capital Markets Lawyers advise our clients in regards to their ongoing regulatory and disclosure obligations with all the relevant local and foreign authorities, and ensure they are up to date concerning all legislative developments. In addition, we regularly represent financial institutions and/or intermediaries in the process of obtaining government-issued licenses to operate in Panama, in accordance with banking and securities laws.

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