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South Africa,United Kingdom : Avanti Communications wins new ESA contract
Publish Date : 23-Sep-2016
Satellite fleet operator Avanti Communications, which is looking for a buyer or strategic investor to avoid a loan default, has received fresh support from its long-time supporter, the European Space Agency, in the form of an investment of $12-million to offer broadband in Africa.
This has been annunced as London's Avanti told investors it would ask its bondholders to accept further secured notes rather than $32.25 million in cash interest that Avanti owes Oct. 1 on its current debt.
The payment in kind would be notes that carry the same 10% interest rate as the existing debt and would be due in 2019. Investors accepting the exchange by 29th Sept. will get $50 in new Avanti debt for every $1,000 in principal they tender, plus a furhter $20 in debt and $1.50 in cash per $1,000 tranche.
Given the further payments, Avanti said it would issue up to $45.15 million in new debt as part of the deal assuming bondholder agreement.
ESA Telecommunications Director Magali Vaissiere said, "ESA is investing in European ground infrastructure and fostering the delivery of satellite services in global markets. We look forward to working with Avanti in Sub-Saharan Africa to support better education outcomes and to unlock new business opportunities for both local Service Providers and European industry technology providers."
