airBaltic’s €40m Tap Issue related to its €340m Outstanding High Yield Bond

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

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