Avianca Files US Sale

Already sounding out investors, Avianca has filed for an equity sale marking the debut of the ADS representing the preferred shares of the Avianca Holdings entity. The airline is seeking to capitalize on momentum generated by the market reaction to Wednesday’s US Fed announcement and the strong secondary market performance of Mexico’s Volaris after its IPO last week. The exact size and timing remain to be set. The Panama-domiciled Colombia-listed holdco is raising funds to modernize the Avianca-Taca fleet. The deal is to include primary shares, as well as secondary shares owned by former Taca executives Juaquin Palomo and Alfredo Ratti and the entities representing the controlling Eframovich brothers and Kriete family. JPM and Citi are leading the transaction, joined by UBS, BTG Pactual and Deustche Bank.