Avianca $1.05 billion DIP-to-exit financing

Davis Polk advised an ad hoc group of investors in connection with Avianca’s A-1 $1.05 billion DIP-to-exit financing. The financing was initially provided as a replacement of Avianca’s DIP facility and, upon emergence of Avianca from Chapter 11 on December 1, 2021, was converted into senior secured notes due 2028.

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 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 Jonathan Cooklin and counsel Dominic Foulkes. Partner Nicholas A. Kronfeld provided capital markets advice and counsel Simon J. Little provided English corporate law advice. Members of the Davis Polk team are based in the New York and London offices.