AVN.L Regulatory News (AVN)

Avanti Raises $157.5m in Bond Proceeds for HYLAS 4

13 June, 2014

LONDON, June 12, 2014 - Avanti Communications Group plc. (the "Company") (AIM: AVN.L) today announced that it has successfully placed $150 million in Senior Secured Notes due 2019 under our current indenture (the "Notes") resulting in proceeds to Avanti of $157.5m. The issue is an addition and amendment to the existing bond and was issued at a Premium of 105% to the September 2013 issue price resulting in a Yield to Maturity of 8.575%.

The proceeds of the offering will be used to commence the HYLAS 4 project. This new satellite will launch in 2017 to serve new markets in Africa, and also to provide expansion capacity for existing customers in areas of Europe and Africa covered by HYLAS 1 & 2.

The Notes were the subject of an amendment agreement to permit the issuance of new debt. It allows Avanti to commence the project with this additional debt funding, and also provides consent for a further $125m issue of the Notes, expected to be made in 2015, with the balance of funding costs of $100m to be met by issuance of junior capital expected in 2015. There were no material new covenants added to the indenture. Jefferies acted as Sole Book Runner for the issue of the Notes.

Avanti expects to execute contracts for the supply of satellite construction and launch services shortly and will update the market in due course.

Avanti confirms that trading for the Full Year to June 30th 2014 is in line with expectations.

David Williams, Chief Executive Officer, said: "We are delighted to receive the strong support of our existing and new bond investors to proceed with the HYLAS 4 project using attractively priced and highly flexible capital. This satellite will give us ubiquitous coverage of Sub-Saharan Africa, as well as expansion capacity in Europe and some new capacity in Latin America. The design is based on the requirements of existing and certain potential new customers. It will almost double the total fleet capacity as well as providing a powerful strategic and competitive advantage. Given the attractive financing structure, we believe it offers a significant enhancement to returns for shareholders."

This announcement has been issued through the Companies Announcement Service of

the Irish Stock Exchange.