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Avation begins consent solicitation to extend maturity of 6½% notes
By Taylor Fox
New York, Feb. 23 – Avation plc launched a consent solicitation to holders of the 6½% senior notes due May 2021 issued by Avation Capital SA, according to a news release.
As announced on Feb. 9, the company had reached agreement with 76% of the holders of the 6½% notes to extend the maturity date by 5.5 years to Oct. 31, 2026.
The consent solicitation formally began on Feb. 23 and will expire on March 12.
The company is offering an early consent fee of up to 75 basis points, including 50 bps up front and a subsequent 25 bps payable later, and a late consent fee of 25 bps.
Holders who give consent prior to March 2 will receive the early consent fee, and holders who give consent by March 5 will receive the late consent fee. Holders who submit consents after March 5 will not receive any consent fee.
Payment of the 50 bps consent fee for early voters and the 25 bps to late voters will be made on March 16.
D.F. King Ltd. (+44 20 7920-9700, +852 3953-7208, 212 269-5550, 866 356-7813; avation@dfking.com) is the tabulation and solicitation agent.
Other details
As previously reported, other terms of the amendment include a cash coupon to include an additional 2½% payment-in-kind or an additional 1¾% cash coupon.
Bondholders are to receive 6 million warrants to subscribe for ordinary shares exercisable to Oct. 31, 2026 at an exercise price of 114.5p per share.
The notes will be callable at 103 for a year and a half, then at 106 until Oct. 31, 2024, at 104.5 until Oct. 31, 2025 and then at par after that.
In addition, there will be “general strengthening” of the notes’ covenants and additional guarantees of security.
The transaction is aimed at improving the company’s capital structure as it grapples with the business impact of the Covid-19 pandemic, the company previously said.
PJT Partners is adviser to the company, and Perella Weinberg UK Ltd. is adviser to the bondholder committee.
Aviation is a commercial passenger aircraft leasing company based in Singapore.
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