Avanti Communications Group announced that it has entered into a facility agreement with HPS1 which will provide a $100 million three-year super senior facility. The proceeds from the Super Senior Facility replaces an existing undrawn higher cost $50 million debt facility and provides $50 million additional new liquidity and will be used to complete the construction and launch of the company's HYLAS 4 satellite and, subject to certain conditions, may be used to redeem or repurchase some of the company's outstanding high yield notes. The interest rate is 7.5% p.a, versus a rate of over 10% p.a. on the facility that is being replaced.

In order to incur the Super Senior Facility, the company has received sufficient consents from holders of its outstanding notes to certain amendments to the indentures governing the notes and the intercreditor agreement, including amendments to the EBITDA financial covenant such that the first testing date is to be moved from 30 June 2017 to 31 March 2018 and the thresholds are to be lowered.

The Super Senior Facility will close upon execution of the necessary documents which the company expects to occur on or around 21 June 2017. Upon the incurrence of the Super Senior Facility, the company will cancel all outstanding commitments for holders of its 2021 PIK Toggle Notes to purchase delayed draw notes on 30 June 2017 and 30 November 2017.
 
Paul Walsh, Chairman of the company, said "This transaction is a positive step for the company to lower its cost of capital with a prominent global investor and provide additional headroom in a crucial period with the launch of HYLAS 4 pending and customer demand for our products recovering."