Avianca Holdings S.A. concluded negotiations with two major shareholders, Kingsland Holdings S.A. and United Airlines, for a $250 million USD loan. The agreement entails a four-year loan term with a 3% interest rate.
“This agreement represents another crucial step in the financial execution of our Avianca 2021 plan, building on the success we have achieved to date in the bond exchange offer. We believe the terms we have agreed to are very attractive, and we are grateful for the confidence United and Kingsland continue to place in the company and its management.”Adrian Neuhauser, Chief Financial Officer of Avianca Holdings S.A.
Avianca Holdings is the Colombian parent company which controls a group of airlines operating from bases in nine Latin American nations. Due to its deteriorating financial situation, it announced its intention to defer payments on long-term leases and pause loan principal payments during the summer.