Troubled satellite operator Avanti Communications Group PLC (LON:AVN) shot higher as it announced a US$100mln debt refinancing.
The new three year agreement replaces an existing US$50mln debt facility and will see some of its highest cost debt replaced and lower the average interest paid to 7.5% from 10%.
Junk bond finance specialist HPS Investment Partners is providing the money, which will be used to fund and launch the HYLAS 4 telecoms satellite.
Avanti added it had renegotiated it covenants on it outstanding bonds and pushed the first testing date back to 31 March 2018 from the end of this month.
All outstanding commitments for holders of its 2021 PIK Toggle Notes to purchase delayed draw notes on 30 June 2017 and 30 November 2017 will also be cancelled.
Paul Walsh, chairman, said "This transaction is a positive step for the company to lower its cost of capital with a prominent global investor and provide additional headroom in a crucial period with the launch of HYLAS 4 pending and customer demand for our products recovering."
Shares rose 36% to 10.9p.