Latvian national airline airBaltic has successfully priced a €340 million 14.50% 5.25-year (five years and three months) senior secured bonds.
The airline reports that the transaction was “well received by both the international and local investment communities, as well as the Latvian State”, resulting in a final allocation to more than 100 global institutional investors from more than 20 countries. The final orderbook surpassed €800 million.
The pricing follows an eight-day investor roadshow, during which the airBaltic management team met with a large number of global institutional investors.
“With successfully priced bond issue, airBaltic has strengthened its position in the Baltic region by accessing international debt capital markets through its eurobond offerings,” said Martin Gauss, President and CEO of airBaltic. “The successful placement of this bond serves to refinance our previously issued €200 million eurobond, demonstrating the trust investors have in airBaltic's strategy. This refinancing will substantially boost the company's liquidity and financial stability allowing us to continue our investments in expanding and modernizing our fleet. This marks a historic milestone for our airline.”
Gauss added that the airline was continuing to steer a course towards its potential initial public offering (IPO) later in 2024, adding: “Our core objectives remain unchanged – to ensure the best connectivity to and from the Baltics, as well as to enhance the passenger experience and deliver a fundamental contribution to the economy.""
The settlement of the bonds is expected to take place on May 14, 2024, and the bonds are expected to be listed on Euronext Dublin stock exchange.
BNP Paribas, Citi and JPMorgan are acting as joint global coordinators and Morgan Stanley and SEB as joint bookrunners for the bond offering. LHV and Signet Bank are acting as co-managers. The airline also appointed STJ Advisors and Superia as its joint independent financial advisors.
airBaltic prices Eurobond
