27 Sep 2013 07:00
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 Plc | Tel: +44 (0) 20 7749 1600 |
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.