London-based speciality satellite operator Avanti Communications has won support from its bond-holders who have given consent for their bonds to be converted into equity. Some 98.09 per cent have agreed to swap debt for newly-issued equity.
The notice of the debt for equity swap was issued on January 25th and bond-holders on a large tranche of 2021-due debt had until February 8th to agree – or reject – the terms.
The move means that fresh shares will be issued and a consequent dramatic reduction in the company’s debt-interest payments.
Avanti’s latest satellite, Hylas 4, is due for launch in early April aboard an Ariane 5 rocket. Hylas 4 should come into service in July and the operator says that it should be 20-25 per cent utilised by 2020.
Hylas 3, a long-awaited satellite, is further delayed and will not now launch much before the Spring of 2019.