Avianca’s dollar bonds trade at distressed levels

Bloomberg

Avianca’s dollar bonds are trading at distressed levels following a spate of bad news for Colombia’s biggest airline.
Avianca Holdings SA $550 million of dollar bonds due in May 2020 plunged this week, sending the yield to 18.6 percent, from 9.7 percent at the start of the month. The shares also fell to a record low, making them both the worst-performing Colombian stock and the worst-performing Latin American airline this year.
S&P Global Ratings cut the airline deeper into junk, to CCC+ from B, and warned of “higher refinancing risk.”
The airline said that BRW Aviation, which owns a majority of outstanding shares, and had breached terms of a loan with United Airlines.