London—Dentons has advised Avia Solutions Group Plc, the leading aviation services group from Central & Eastern Europe, on the debut issue of high yield Rule 144A/Regulation S US$300 million 7.875 per cent. Guaranteed Notes due 2024.

The Notes were issued by ASG Finance Designated Activity Company and guaranteed by Avia Solutions, AviaAM Leasing AB, Baltic Ground Services UAB, Chapman Freeborn Holdings Limited, FL Technics UAB and SIA Smart Aviation Holdings. The bonds are listed on the global exchange market of Euronext Dublin. Dentons acted as English and United States counsel to the issuer, Avia Solutions and the other guarantors.

Avia Solutions is an aerospace business group with a vast network of subsidiaries and a provider of aviation services and solutions worldwide. The group adopted its current structure in October 2019, following the acquisition by Avia Solutions of AviaAM Leasing, Chapman Freeborn Holdings and SIA Smart Aviation Holdings (a holding company for two airline operators, Smartlynx and Avion Express). It offers a wide range of services including aircraft maintenance, ground handling, crew training and staffing, private jet charters, aviation IT solutions as well as aircraft leasing (Including ACMI).

Jonas Janukėnas, Chief Executive Officer of Avia Solutions, said, "We are very pleased with this successful debut bond issue. This bond issue is crucial to our business strategy towards Avia Solutions' continued growth and success. We were impressed with the Dentons capital markets team, who managed a complex transaction smoothly and guided us through the intricacies of a debut bond issuance process."

Cameron Half, London-based US Securities partner at Dentons, said, "We are delighted to have worked closely with Avia Solutions on such a significant debut bond issue. The strength of our international capital markets offering shows through in this transaction. For instance, because of the changes to the group's structure just prior to the issuance, no consolidated historical group financial information for the group was available. Moreover, the group has major operating subsidiaries in multiple jurisdictions, including Lithuania, Latvia, Estonia and the United Kingdom. In a short timeframe, we worked closely with the Avia Solutions team to prepare relevant documentation and disclosure and to conduct due diligence on the group.”

Nick Hayday, London-based Debt Capital Markets partner at Dentons, said, "The issuance reflects Dentons' continuing strength in capital markets transactions in the airline and aerospace industry. It builds on our recent work with Ryanair on its EMTN Programme and with airBaltic, which became the first airline in Central and Eastern Europe to access the Eurobond market. This is also the fourth major capital markets transaction involving Lithuanian entities in which the Dentons capital markets team has been recently involved, which included the first international corporate green bonds issuance in Central and Eastern Europe by Ignitis Group (formerly Lietuvos Energija, UAB) and sovereign bond issues by the Republic of Lithuania."

London-based US Securities partner Cameron Half and Debt Capital Markets partner Nick Hayday led the Dentons team advising on the transaction. The team included senior associate Nicholas Yao, US Securities associate Nicolò Ascione, and associates Moeen Qayum, Emma Brown, Kal Masia, Rachel Gibb, Charlotte Uden and trainee Shinae Lee. New York Tax partner Jon T. Hutchens provided US tax advice, and Washington, DC partner Peter Feldman provided US sanctions and trade policy advice. Additional advice was provided by TGS Baltic as to Lithuanian law, Magnusson as to Latvian law and Estonian law, Antis Triantafyllides & Sons as to Cypriot law and Walkers as to Irish law.

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