TIDMAVN
RNS Number : 2213A
Avanti Communications Group Plc
28 May 2019
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS
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WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY
JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION
WOULD BE UNLAWFUL.
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT (THE
"ANNOUNCEMENT") IS DEEMED BY THE GROUP TO CONSTITUTE INSIDE
INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATIONS (EU)
NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA
REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN.
For immediate release
28 May 2019
Avanti Communications Group plc
Closing of $55.0 million 1.5 Lien Credit Facility
Avanti Communications Group plc (AIM: AVN.L) ("Avanti" or the
"Company") is pleased to announce 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").
The 1.5 Facility matures in May 2021 or, if the Company's
existing super senior facility (the "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%.
Financial Results and Outlook
The Company confirms that the audited financial results for the
18-month period to 31 December 2018 will be published on or around
7 June 2019. As a result of this being later than anticipated, it
will not be possible for the accounts to be laid at the Annual
General Meeting currently scheduled for 24 June 2019. These
financial statements will therefore be laid at a separate general
meeting as soon as practicable thereafter.
The Company is also pleased to reconfirm the outlook statement
it released on March 28, 2019. Bandwidth revenues for the 12 months
to December 2018 are expected to be approximately $32 million. This
excludes low margin project and equipment revenues. Bandwidth
revenues are forecast to increase by 125% in 2019 and at least a
further 40% in 2020. The growth is anticipated to come from
Government business on HYLAS 4 and HYLAS 3, once operational.
Underlying costs of delivering bandwidth is around $80 million.
However, the Company has instigated a cost optimisation project,
which is expected to reduce the costs associated with bandwidth
sales by at least 15% per annum by 2020.
These measures should result in a positive EBITDA from the
bandwidth business in 2019, with further material growth in
2020.
In addition to the outlook statement released on 28 March 2019,
the Company confirms that HYLAS 3 is expected to launch on 24 July
2019 from French Guiana on an Ariane 5 launch. The launch of HYLAS
3 will complete this satellite asset capital expenditure cycle for
Avanti, and will bring additional steerable Ka band capacity to the
current fleet.
For further information, please contact:
Avanti Communications Nigel Fox Tel: +44 20 7749 1600
Cenkos Securities (Nomad) Max Hartley / Katy Birkin
Tel: +44 207 397 8900
Newgate Communications Ralph Anderson: +44 20 3757 6883
Important Notices
This announcement may contain forward-looking statements
regarding future events or the future financial performance of
Avanti. You can identify forward looking statements by terms such
as "expect", "believe", "estimate", "anticipate", "intend", "will",
"could", "may", or "might", the negative of such terms or other
similar expressions. These forward-looking statements include
matters that are not historical facts and statements regarding
Avanti's intentions, beliefs or current expectations concerning,
among other things, the expected outcome of the Consent
Solicitation. By their nature, forward-looking statements involve
risks and uncertainties, because they relate to events and depend
on circumstances that may or may not occur in the future. Avanti
cautions you that forward-looking statements are not guarantees of
future performance and that Avanti's actual results may differ
materially from those described in or suggested by the
forward-looking statements contained in this announcement. In
addition, 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. Many factors could cause the actual results to differ
materially from those contained in forward-looking statements of
Avanti, including, among others, general economic conditions, the
competitive environment and the many other risks specifically
related to Avanti and its operations, including those discussed in
this announcement.
This announcement is for information purposes only and is not
intended to, and does not, constitute or form part of any offer,
invitation or the solicitation of an offer to purchase, otherwise
acquire, subscribe for, sell or otherwise dispose of, any
securities whether pursuant to this announcement or otherwise. The
distribution of this announcement in jurisdictions outside the
United Kingdom may be restricted by law and therefore persons into
whose possession this announcement comes should inform themselves
about, and observe such restrictions. Any failure to comply with
the restrictions may constitute a violation of the securities law
of any such jurisdiction.
In particular, this announcement is not an offer of securities
for sale in the United States. Securities may not be offered or
sold in the United States absent registration or an exemption from
registration under the United States Securities Act of 1933. Any
securities mentioned herein have not been and will not be
registered under the United States Securities Act of 1933, and no
public offering will be made in the United States.
This information is provided by RNS, the news service of the
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END
MSCVDLFLKEFBBBD
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May 28, 2019 02:01 ET (06:01 GMT)
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