AirBaltic Arranges €257m Interim Financing with Bondholders
Latvian flag carrier airBaltic has agreed terms for up to €257 million in bridge financing from current bondholders and third-party financiers, pending approval at a September 11 meeting.
airBaltic said Thursday that it has reached agreements with existing bondholders and outside financiers for up to €257 million, or about $298.5 million, in interim financing. The money would come from new bonds due on February 26, 2027.
Bondholders and investors still need to approve the deal at a meeting on September 11. If they do, about €180 million would become available shortly after. A further €77 million would be released once more conditions are met.
CEO Erno Hildén said in a statement that the financing provides a clear path to secure liquidity for the airline's next development phase. He added that the revised business plan requires decisive steps to strengthen the financial position and build a more efficient, self-sufficient airline.
Last month the carrier announced it would adopt a new business plan and reduce its Airbus A220 fleet, which had been expected to expand. It cited moderating revenue growth and uncertainty in the European air travel market.
Sources
- airlinegeeks.comAirBaltic Makes Deal for $298M in Interim Financing