PPU advises on Avianca’s $2.1 billion debt restructuring and issuance
Philippi, Prietocarrizosa, Ferrero DU & Uría (PPU) has acted as local counsel to a consortium of major investment banks in Avianca’s successful debt restructuring and new note issuance. The transaction, which closed on February 14, 2025, involved an exchange offer for existing notes and a new issuance, totaling approximately $2.1 billion.
The exchange offer for Avianca’s 9.000% Tranche A-1 Senior Secured Notes due 2028 achieved an acceptance rate of over 99%. As a result, Avianca issued about $1.1 billion in aggregate principal amount of new 9.000% Senior Secured Notes due 2028, stripping the collateral, guarantees, and substantially all covenants from the existing notes.
Concurrently, Avianca offered $1.0 billion aggregate principal amount of senior secured notes due 2030. The proceeds were used to redeem Avianca’s 9.000% Tranche A-2 Senior Secured Notes due 2028 and prepay its LifeMiles Credit Facility.
The transaction spanned multiple jurisdictions, including Bahamas, Bermuda, Canada, Colombia, Costa Rica, Curacao, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, United Kingdom, Chile, and the United States of America.
Other law firms involved in the transaction included Davis Polk & Wardwell as counsel to the consortium of investment banks, Simpson Thacher & Bartlett as counsel to Avianca, and Gomez Pinzon Abogados.
The PPU team was led by partners Hernando Padilla (pictured left) and Hector Ramirez (pictured right). Associates involved in the transaction were Ximena Gonzalez, Natalia Velasco, Manuela Arenas, Daniel Vargas, Neider Londoño, Tomas Velasquez, Alexandra Verano, and David Beltrán.
