Avianca Files to Raise $544.7 Million in Depositary Receipt Sale

Avianca Holdings SA filed to raise as much as $544.7 million in a share sale in the U.S. as the Colombian airline seeks funds to help pay for about 100 planes over the next six years.

The company said it will offer about 27.2 million American depositary receipts for $17 to $20 a piece, each of which represents eight preferred shares. The shares closed at 4,010 pesos in Bogota on Oct. 18, giving eight of them a value of about $17.05.

The Bogota-based airline plans to use proceeds from the offering to buy new planes, including up to 15 Boeing Co. 787 Dreamliners, according to the filing.

Chairman German Efromovich, along with his brother Jose, controls about 70 percent of Avianca’s voting shares through their closely held Synergy Aerospace Corp. They will hold a stake equivalent to 78 percent of the common stock after the share sale.

To contact the reporter on this story: Christine Jenkins in Bogota at cjenkins28@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.