Avianca’s $1.05 Billion New Tranche A-1 DIP-to-Exit Facility

Davis Polk advised an ad hoc group of lenders in the transaction.

Avianca Holdings S.A. and certain of its subsidiaries (collectively, “Avianca”) announced a $1.05 billion senior secured term DIP-to-exit facility. The DIP-to-exit facility will convert into an exit facility upon Avianca’s emergence from chapter 11 subject to the satisfaction of certain conditions. On August 18, 2021 the U.S. Bankruptcy Court for the Southern District of New York entered an order approving the DIP-to-exit financing.

Established in 1919, Avianca provides air travel and cargo services in the Latin American market and across the globe. Avianca is the largest airline in the Republic of Colombia and the second-largest airline group in Latin America, and is a member of the Star Alliance which, with 26 members, is the world’s largest global airline alliance.

The Davis Polk restructuring team included partners Damian S. Schaible (Picture) and Natasha Tsiouris, counsel Christian Fischer and Jon Finelli and associates Jonah A. Peppiatt, Alexander K.B. Shimamura and Abraham Bane. The tax team included partner Lucy W. Farr, counsel Tracy L. Matlock and associate Ben Levenback. 

Involved fees earner: Abraham Bane – Davis Polk & Wardwell; Lucy Farr – Davis Polk & Wardwell; Jon Finelli – Davis Polk & Wardwell; Christian Fischer – Davis Polk & Wardwell; Ben Levenback – Davis Polk & Wardwell; Tracy Matlock – Davis Polk & Wardwell; Jonah Peppiatt – Davis Polk & Wardwell; Damian Schaible – Davis Polk & Wardwell; Alexander Shimamura – Davis Polk & Wardwell; Natasha Tsiouris – Davis Polk & Wardwell;

Law Firms: Davis Polk & Wardwell;

Clients: Avianca Holdings S.A.;

Author: Martina Bellini