Announcement

18
AUGUST
2015


Category Label


Client Announcements

Avanti Comms Group : Completion of HYLAS 4 satellite financing

  •  
  •   18 August 2015

RNS Number : 3194W

Avanti Communications Group Plc

18 August 2015

 



18 August 2015

 

AVANTI COMMUNICATIONS GROUP PLC

Completion of HYLAS 4 satellite financing

 

Avanti Communications Group plc ("Avanti"), a leading provider of satellite data communications services in Europe, the Middle East and Africa ("EMEA"), announces the completion of financing for its HYLAS 4 satellite, in line with the previously announced financing plan.

 

Avanti has successfully placed $125m in Senior Secured Notes due 2019 (the "Notes") under the Company's existing indenture. The Notes will be issued at a small discount to the current trading price of Avanti's existing notes and will have a coupon of 10%.

 

The investor group was led and managed by MAST Capital Management, LLC, a Boston-based investment firm.

 

HYLAS 4 remains on-track for launch in early 2017 and will complete Avanti's coverage of EMEA. The majority of the satellite's capacity will serve high-growth markets in Africa. The Company expects that this will consolidate its first mover advantage across EMEA, and enhance the future cash generation potential of the Group.

 

In addition, Avanti has also simultaneously conducted an equity capital raising (the "Capital Raising"). Avanti has issued 3,592,781 new ordinary shares (the "New Ordinary Shares") of 1p each ("Ordinary Shares") at a price of 200.65p per New Ordinary Share, to raise approximately £7.2m ($11.3m) (net of expenses) in order to satisfy demand from bond investors.

 

The Capital Raising has been conducted under the Company's existing shareholder authorities to allot new Ordinary Shares for cash on a non-pre-emptive basis. The issue price of 200.65p represents a discount of 4.0% to the closing middle market price of 209.00p per existing Ordinary Share on 17 August 2015, the last dealing day prior to this announcement.

 

Application has been made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM ("Admission"). The New Ordinary Shares will represent approximately 2.47% of Avanti's issued Ordinary Share capital immediately following Admission. It is expected that Admission will become effective and that dealings in the New Ordinary Shares will commence on AIM at 8.00 a.m. on 21 August 2015. The Notes will be issued on the same day.

 

Following the Admission, the total number of Ordinary Shares with voting rights admitted to trading on AIM will be 145,396,350. The New Ordinary Shares will rank pari passu in all respects with Avanti's existing Ordinary Shares in issue. Avanti does not hold any Ordinary Shares in treasury.

 

The above figure of 145,396,350 Ordinary Shares may be used by shareholders in Avanti as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of Avanti, under the Financial Conduct Authority's Disclosure and Transparency Rules.  

Peter Reed, Partner and Portfolio Manager, MAST Capital Management, LLC said: "We have long admired Avanti's business and its management team. The completion of the financing for the HYLAS 4 satellite is an exciting and important milestone for the Company and we are pleased to play a leadership role in the satellite's development by investing $125 million into newly issued notes and shares."

David Williams, Avanti Chief Executive, said, "Today's funding for HYLAS 4 enables us to complete our coverage of EMEA in early 2017.  Avanti now offers more High Throughput Satellite capacity to its telco customers in Africa than any other satellite operator, enabling us to build strong partnerships for the long term. Millions of people and businesses in Africa don't have to wait for tomorrow, Avanti delivers superfast broadband today."

 

For further information please contact:

Avanti: Matthew Springett, +44 (0)207 749 6703

Montfort: Nick Miles / James Olley, +44 (0)203 770 7909

Cenkos Securities: Max Hartley (Nomad) / Julian Morse, +44 (0)207 397 8900

Redleaf: Hannah Nicolas, +44 (0)207 382 4734

MAST: Steve Bruce or Taylor Ingraham, ASC Advisors,  +1 203 992 1230 

 

 

Notes to editors

Avanti connects people wherever they are - in their homes, businesses, in government and on mobiles. Through the HYLAS satellite fleet and more than 150 partners in 118 countries, the network provides ubiquitous internet service to a quarter of the world's population. Avanti delivers the level of quality and flexibility that the most demanding telecoms customers in the world seek.

 

Avanti is the first mover in high throughput satellite data communications in EMEA. It has rights to orbital slots and Ka band spectrum in perpetuity that covers an end market of over 1.7bn people.

 

The Group has invested $1.2bn in a network that incorporates satellites, ground stations, datacentres and a fibre ring.

 

Avanti has a unique Cloud based customer interface that is protected by patented technology.

 

The Group has three satellites in orbit and a further two fully funded satellites under construction.

 

Avanti Communications is listed in London on AIM (AVN:LSE).

 

www.avantiplc.com

 

About MAST

Founded in 2002, MAST Capital Management, LLC is an SEC-registered investment advisor that specializes in event-driven and credit investments, focusing predominantly on middle market opportunities. Currently, MAST manages and sub-advises approximately $1.2bn for sophisticated institutional and family office investors globally. The Boston-based Firm is employee-owned with a minority stake held by Dyal Capital Partners, a subsidiary of Neuberger Berman.


This information is provided by RNS

The company news service from the London Stock Exchange

 

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