Avianca Prices US$650M Senior Secured Notes Due 2032

Avianca Group International Limited has priced a US$650 million offering of new 10.250% Senior Secured Notes due 2032, a move designed to refinance existing debt and extend the Airlines corporate maturity profile.

In a press release issued on June 25, 2026, the company announced that its subsidiary, Avianca Midco 2 PLC, priced the offering on June 24, 2026. The transaction is expected to close on July 7, 2026, subject to standard closing conditions.

Debt refinancing strategy

Avianca intends to use the net proceeds from the offering to redeem all of its outstanding 9.000% Senior Secured Notes due 2028 and all of its outstanding 9.000% Tranche A-1 Senior Notes due 2028. The company stated that any remaining funds will be allocated for general corporate purposes, which may include future repayment of other outstanding indebtedness.

The new 2032 notes will share identical collateral terms with the company’s existing 9.625% Senior Secured Notes due 2030 and 9.500% Senior Secured Notes due 2031. This alignment standardizes the collateral structure across Avianca’s medium-term secured debt.

Institutional offering details

The notes are being offered exclusively to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S of the U.S. Securities Act of 1933.

This regulatory framework limits the offering to institutional investors rather than the general public. The approach aligns with standard corporate debt restructuring practices for international carriers managing large-scale capital structures.

AirPro News analysis

We view this US$650 million issuance as a standard capital structure optimization following Avianca’s broader financial strategy. By replacing 2028 maturities with 2032 notes, the airline secures a longer runway for its debt obligations, albeit at a higher interest rate of 10.250% compared to the 9.000% rate on the retiring notes. The identical collateral structure across the 2030, 2031, and new 2032 notes indicates a deliberate, standardized approach to the carrier’s secured debt profile.

Sources: Avianca Group International Limited