He noted that before the public offering of shares, the airline must refinance the bonds and now airBaltic is in the process of refinancing, adding that airBaltic shares are planned to be listed on the Nasdaq Riga exchange.
Gauss also said that this public offering will be the largest in the Baltics.
At the same time, the head of the airline noted that airBaltic is also negotiating with potential investors to raise 100 million euros.
It was previously reported that airBaltic plans to attract additional financing in the amount of 100 million euros.
The 2023 annual report states that €200 million of the bonds mature in July 2024, so the airline will seek external financing to refinance the bonds and plans to raise additional funding of around €100 million.
“In addition to the €200 million refinancing, the airline plans to raise a further €100 million to improve its cash balance and help finance further capital expenditure related to capacity expansion,” the annual report noted.
In addition, airBaltic has engaged international investment banks and financial consultants and is simultaneously working on various refinancing options, including raising funds on the debt market.
However, the annual report acknowledges that uncertainty remains regarding the refinancing of the €200 million bonds due in July 2024.
The airline is considering two parallel refinancing paths: public and private. In addition, the possibility of using second liens or similar rights on a number of aircraft and engines is being explored. The market value of these aircraft and engines is expected to exceed current liabilities, providing greater financial security for the debt.
The report also notes that the airline has entered into discussions with shareholders, including the Latvian government, to explore their willingness to finance some of the new debt on market terms alongside private investors.
It was also reported that in July 2019, airBaltic issued five-year bonds worth EUR 200 million. The bonds were purchased by more than 100 investors from 25 countries, and demand exceeded supply. The interest rate on the bonds is 6.75%.
At the beginning of July 2020, following several months of assessment, the European Commission approved the Latvian government’s decision to inject 250 million euros into airBaltic’s share capital to help it cope with the Covid-19 crisis. Over the following years, the state injected additional funds into the share capital of airBaltic in two tranches, and the company’s share capital now stands at 596.473 million euros. According to the decision of the European Commission, Latvia must return the invested funds within five to seven years.
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2024-04-22 07:15:35
