Debt refinancing deal replaces existing $50m debt facility and reduces interest rate to 7.5%
Companies: Avanti Communications Group
Shares in satellite operator Avanti Communications rocketed 55% on Friday after the AIM-listed microcap announced that it had secured a $100m debt refinancing package.
The deal, which replaces the existing $50m debt facility, is for three years and will see its interest rate reduced to 7.5% from 10%.
HPS Investment Partners, a Junk Bond Financing Specialist, is lending the money which will be used to complete its HYLAS satellite.
Chairman Paul Walsh said the transaction was a positive step for the company:
"This transaction is a positive step for the Company to lower its cost of capital with a prominent global investor and provide additional headroom in a crucial period with the launch of HYLAS 4 pending and customer demand for our products recovering."
