Avanti seeks more cash
May 14, 2019
By Chris Forrester
London-based Avanti Communications is looking at various options in order to rise money. The end result will be additional capital in the form of fresh senior debt which it calls The New Facility.
The borrowing plans were first mooted in March.
As Avanti explains: “The New Facility would be senior as to priority of enforcement proceeds relative to the 9 per cent/9 per cent Senior Secured Notes due 2022 (the “Notes”) and junior to the existing super senior debt. If the Company puts in place the New Facility, the holders of the Notes (the “Holders”) will be offered the right to become lenders under the New Facility in the amount proportionate to their holdings of the Notes.”
Avanti says in its cautionary statement: “Even if Avanti’s results are consistent with the forward-looking statements contained in this announcement, those results or developments may not be indicative of results or developments in future periods. Avanti does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.”
News of these new junk bonds didn’t help market sentiment, and their already depressed shares fell back 6 per cent on May 13th to about 2.11 pence/share, and half what they were back in February.