Milbank LLP represented Avianca Holdings S.A. (“Avianca”) in connection with the successful renegotiation of substantially all of its debt, lease obligations and agreements with its key suppliers, consistent with the Avianca 2021 plan launched earlier this year. In early December 2019, Avianca was able to complete the funding of US$250 million by way of a senior convertible loan by United Airlines, Inc. and an affiliate of Kingsland Holdings Limited. Simultaneously, Milbank also helped Avianca to obtain US$125 million in additional senior secured convertible financing commitments from Citadel, a leading global investment firm, and a group of Latin American private investors.
In anticipation of these transactions, Milbank also represented Avianca in the $550 million exchange offer of its existing 8.375% senior notes due 2020 for up to $550 million of new 8.375% senior secured notes due 2020, with a total of 88.1% of bonds tendered. The new notes had their maturity extended to 2023 upon the funding of the United and Kingsland loan.
The Milbank deal team was led by partners Marcelo Mottesi, Tobias Stirnberg, Helfried Schwarz and Abhilash Raval, along with partner elect Nelly Almeida and associates Gonzalo Guitart, Bodie Stewart, Gahee Lee and Zachary Cronin.
Mr. Mottesi said: “This deal not only illustrates our team’s prowess in the Latin America region, but also our depth of experience in the transportation sector. Latin America is a region teeming with opportunities for the transportation sector and other industries, and Milbank continues to be a part of the region’s most complex and significant deals by collaborating across practice groups.”
Mr. Stirnberg said: “Milbank is pleased to represent Avianca in this significant multifaceted transaction, especially because it was completed in such a short amount of time and many stakeholders involved.”
