Avanti Communications Group plc Announces Closing of $55 Million 1.5 Lien Credit Facility
May 28, 2019 at 02:00 am EDT
Avanti Communications Group plc announced that, further to previous announcements, it has now closed the new $55.0 million two-year 1.5 lien credit facility. The 1.5 Facility matures in May 2021 or, if the Company's existing super senior facility is extended, in July 2021. Loans made under the 1.5 Facility will bear PIK interest at an annual rate equal to 12.50%. The 1.5 Facility ranks senior relative to the Company's high yield notes and junior relative to the Company's existing super senior debt under the Super Senior Facility for the priority of payment of enforcement proceeds. The Company will use the proceeds of the loans under the 1.5 Facility to fund capital expenditures and working capital needs of the Company and its subsidiaries. The Company has also obtained consent from the lenders under the Super Senior Facility to extend, at its election, the maturity to January 2021, subject to the payment of an extension fee. The annual interest rate under the Super Senior Facility has been reset to 9.5%.