Avanti Communications Group Plc Avanti raises $370m bond (0792P)
September 27 2013 - 1:01AM
UK Regulatory
TIDMAVN
RNS Number : 0792P
Avanti Communications Group Plc
27 September 2013
Avanti Communications Group plc
Avanti raises $370m bond
LONDON, Friday 27 September 2013 - Avanti Communications Group
PLC (AIM: AVN, "Avanti" or the "Company"), the satellite data
communications company, announces that it has successfully placed $
370 million in Senior Secured Notes due 2019 with a coupon of 10%
(the "Notes").
The Notes provide Avanti with a significantly more flexible
financing structure as well as extending its debt maturity profile
to 2019. The net proceeds of the offering will be used primarily to
refinance existing debt facilities.
Avanti is also pleased to announce that it has signed a
Memorandum of Understanding with the European Space Agency in
relation to the acquisition of the Artemis satellite for a nominal
sum. This satellite, which has a minimum of a further three years
of useful life, occupies an orbital position at 21.5 East and gives
the Company access to new opportunities. The Artemis contract is
subject to final approval by ESA.
Jefferies and UBS Investment Bank acted as Joint Global
Co-Ordinators for the issue of the Notes. Avanti was advised by
Rothschild.
David Williams, Chief Executive Officer, said:
"We are delighted to have entered the debt capital markets with
our first bond issue which diversifies and increases the sources of
funding available to the Company. The greater flexibility which the
Notes provide will allow us to utilise our balance sheet more
effectively and to respond to new opportunities. The Notes have no
financial ratio covenant tests and greatly enhance our cashflow. We
look forward to the completion of the Artemis transaction and the
opportunities for growth that it provides. "
For further information please contact:
Avanti Communications Group Tel: +44 (0) 20 7749 1600
Plc
David Williams, Chief Executive
Cenkos Securities plc Tel: +44 (0) 20 7397 8900
Max Hartley (Nomad)/Julian
Morse
Jefferies Hoare Govett Tel: +44 (0) 20 7029 8000
Neil Collingridge/John Fishley
College Hill Tel: +44 (0) 20 7457 2020
Adrian Duffield
This announcement is neither an offer to sell nor a solicitation
of an offer to buy any of the securities described herein and shall
not constitute an offer, solicitation or sale in the United States
or any jurisdiction in which such offer, solicitation or sale is
unlawful. The securities have not been registered under the
Securities Act, or any applicable state securities laws, and are
being offered in the United States to qualified institutional
buyers in reliance on Rule 144A under the U.S. Securities Act of
1933, as amended (the "Securities Act")and outside the United
States to certain non-U.S. persons pursuant to Regulation S under
the Securities Act. Unless so registered, the securities may not be
offered or sold in the United States except pursuant to an
exemption from the registration requirements of the Securities Act
and applicable state securities laws. Any public offering of
securities to be made in the United States will be made by means of
a prospectus. Such prospectus will contain detailed information
about the issuer making the offer and its management and financial
statements. No public offering of the Notes will be made in the
United States.
About Avanti
-- Avanti sells satellite data communications services to
telecoms companies which use them to supply residential, enterprise
and institutional users.
-- Avanti's first satellite called HYLAS 1, launched on November
26th 2010 and was the first superfast broadband satellite launched
for Europe.
-- Avanti's second satellite, called HYLAS 2, launched on August
2nd 2012. It extended Avanti's coverage to Africa, Caucasia and the
Middle East.
-- Avanti's third satellite HYLAS 3, to be launched in
partnership with ESA in 2015, will provide further capacity in the
EMEA region.
-- 83% of Avanti's fleet capacity addresses the emerging
telecommunications markets of Africa, Caucasia and the Middle
East.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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