Avanti Communications Group announced the closure of its new $55.0m two-year 1.5 lien credit facility. The 1.5 facility matures in May 2021 or, if the company’s existing super senior facility is extended, in July 2021. Loans made under the 1.5 facility will bear PIK interest at an annual rate equal to 12.50%.
The 1.5 facility ranks senior in relation to the company’s high yield notes and junior in relation to the company’s existing super senior debt. The company will use the proceeds of the loans under the 1.5 facility to fund capital expenditures and working capital needs of the company and its subsidiaries.
The company also acquired consent from the lenders under the super senior facility to extend, at its election, the maturity to January 2021, subject to the payment of an extension fee. The annual interest rate under the super senior facility was reset to 9.5%.