Press Release

BLP advised Avianca MidCo 2 PLC, as Issuer, and its guarantor subsidiaries in connection with the initial issuance of US$600,000,000 aggregate principal amount of 9.500% Senior Secured Notes due 2031, as well as a subsequent tap issuance of US$150,000,000 under the same 2031 series, reaching a total issuance amount of US$750 million. The firm acted as local counsel in Costa Rica, El Salvador, and Guatemala. 

The issuance forms part of a comprehensive liability management strategy aimed at strengthening Avianca's financial profile, optimizing its capital structure, and extending its maturity profile. As part of this strategy, the Issuer applied a portion of the proceeds to partially redeem its existing notes due 2028, with the remaining proceeds allocated to general corporate purposes. Through this transaction, the company consolidates a debt platform exceeding US$2.0 billion in the international capital markets, with staggered maturities in 2028, 2030, and 2031, reinforcing its liquidity position and long-term financial stability. 

This financing generates significant benefits for the aviation industry by supporting fleet modernization, route network optimization, and enhanced operational reliability across Avianca's multi-country footprint. Accordingly, the transaction contributes not only to the company's strategic growth but also to the strengthening of the aviation sector in Central America and Latin America. 

In the context of this highly sophisticated capital markets transaction, BLP provided comprehensive legal counsel in connection with the structuring, negotiation, implementation, and perfection of the local collateral package across three Central American jurisdictions, ensuring proper creation, enforceability, and regulatory compliance. The scope of work included the preparation of corporate resolutions, certificates of incumbency, legal opinions, amendments to security documents, and coordination with international counsel. 

The transaction was led by Partner Julio Castellanos, with the participation of Jorge Arenales – Partner (Guatemala); Anneliss Wohlers (Guatemala); Alejandro Fallas (Costa Rica); José Góchez (El Salvador); Andrea Melara (El Salvador); Delmer Rodríguez (El Salvador); Rebeca Baldizón (Guatemala); and Adrián Urbina (Guatemala).