airBaltic’s €40m Tap Issue related to its €340m Outstanding High Yield Bond
"We wanted to thank you and your team for your support throughout the various work streams. We really appreciate your hard work and look forward to the next successful steps in the Eagle project as well as the IPO." - Leadership Team
2024
STJ-Superia acted as independent advisor to airBaltic
Transaction Highlights
- On 17th October 2024, airBaltic successfully priced a tap issue of €40m related to its €340m outstanding high yield bonds
- The proceeds will be used for general corporate purposes, to support airBaltic’s current liquidity requirements and for future fleet expansion in line with the approved business plan
- A wall-crossing exercise conducted over 3 days gave a strong visibility on pricing and demand levels ahead of launch.
- The transaction priced at a 112.5%, which represents a tight 1.0 % discount to the previous closing price of 113.60%. The deal was priced on the back of supportive high yield bond market conditions and strong trading momentum of airBaltic current outstanding bonds
- The books were covered in the first 30 minutes and gathered c. €125m of demand, coming mainly from international accounts, with numerous quality investors. Hedge Funds were allocated 67% and Asset Managers 33%.
Key STJ-Superia value-add
- STJ-Superia structured the transaction: STJ-Superia run a bespoke tight process to select the sole global coordinator, improving the terms for the issuer and minimising the execution risk with a potential backstop
- Ensuring a smooth and timely execution: STJ-Superia managed the process to ensure the transaction is launched timely, benefitting from supportive high yield bond market conditions and pricing well ahead of US election to avoid market volatility
- Assisting airBaltic in its conversations with the Government: STJ-Superia assisted airBaltic on all its dialogue with the Government of Latvia and all the other stakeholders
- Support in the communication strategy: STJ-Superia worked with the Company and its PR advisors to prepare a proactive communication strategy explaining the opportunistic rationale of the transaction
- Independent advice on key decisions throughout the process: STJ-Superia provided independent views on the key stages of the transaction, including, but not limited to, launch of wall-crossing, go / no-go decision, pricing and allocations
