NEW YORK – December 9, 2019 – Seabury Securities LLC, the wholly-owned investment banking arm of Seabury Capital Group LLC (collectively, “Seabury Capital”) announced today the successful completion of a comprehensive liquidity program for Avianca Holdings S.A. (“Avianca”) that involved reprofiling over $4.5 billion of lease and debt obligations (excluding debt at Avianca’s LifeMiles subsidiary) as well as securing $375 million of new financing and financing commitments anchored by a $250 million mandatorily convertible loan facility (the “Convertible Loan Facility”) provided by United Airlines Inc. (“United”) and Kingsland Holdings S.A. (“Kingsland”). Funding of the Convertible Loan Facility today triggered the going effective of the reprofiling program, anchored by an ambitious profit turnaround plan, the “Avianca 2021 Plan,” which Seabury Capital played a key role in designing.
“The success of this liquidity program can be directly linked to the courage of Avianca’s executive team and Board of Directors in embracing comprehensive profit turnaround and liquidity plans that are codified in the Avianca 2021 Plan and to the financial support provided by United and Kingsland,” said John E. Luth, Chairman, President & CEO of Seabury Capital Group. “That combination gave us the ability to collectively persuade Avianca’s creditors, lessors, and other key stakeholders to commit to continuing to support Avianca.”
Anko van der Werff, Chief Executive Officer of Avianca, remarked: “The Avianca 2021 Plan represents the foundation for Avianca’s future, and we are excited now to have completed this important reprofiling program and to have received funding from United and Kingsland that serves as the cornerstone of our Plan. Our Plan incorporates a comprehensive profit boost, to be executed over the coming 24 months, that is designed to drive better unit revenue and cost performance by Avianca. Our collaboration with Seabury Securities was crucial to crafting a plan that would earn the confidence of our creditors, travel partners, employees, and other key stakeholders.”
Added Adrian Neuhauser, Chief Financial Officer of Avianca, commented: “We are very pleased with the enormous outpouring of support from our creditors and key stakeholders and vote of confidence by United and Kingsland. We appreciate the extraordinary investment banking and restructuring advisory services provided to us by Seabury Securities, which was critical to the success of the reprofiling.”