Avianca prices €572.5M senior secured bond due 2032 at 10.125%
What's the deal? Colombian airline AviancaDealroom has a profile for this one. Try Dealroom → has priced a €572.5 million ($650 million) senior secured bond maturing in 2032, carrying an interest rate of 10.125%.
The bond shares identical terms and guarantees with two earlier senior secured issues: one yielding 9.625% due in 2030, and another at 9.500% due in 2031.
Why now? Avianca plans to use the proceeds for general corporate purposes and to redeem its outstanding 9.000% senior secured bonds due in 2028, along with its 9.000% Tranche A-1 senior notes also due in 2028.
The move lets the airline retire higher-priority near-term debt and push maturities further out.
What could go wrong? The 10.125% coupon is steeper than the notes it replaces, raising Avianca's borrowing costs even as it buys time.
The company said the funds could also go toward future repayment of other outstanding debt, extending those maturities.
The signal: Avianca is reshaping its debt profile rather than reducing it, trading near-term pressure for breathing room at a higher price. The rising yields across its three recent senior secured issues — from 9.500% to 10.125% — point to the steeper cost airlines now face to keep refinancing in a tight credit market.
Read more: Forbes
