airBaltic seeks €257 million emergency bridge financing

Latvian national carrier airBaltic is seeking approval from bondholders for up to €257 million in emergency bridge financing to support a major operational restructuring. The proposed financing would be raised through the issuance of new super-senior bonds with a maturity date of February 26, 2027.

The financing carries a high annual interest rate of 25%. Under the current agreement, €180 million would be made available shortly after approvals are secured, with an additional €77 million released upon the fulfillment of further conditions. The deal is backed by London-based Polus Capital Management and Israel-based Klirmark Capital 4, with Polus committed to subscribing to at least half of the new bonds.

Existing bondholders, including the Latvian government, will have the opportunity to participate in the new issuance on a proportional basis. Andrejs Martinovs, chairman of the airline's supervisory board, stated that this was the best financing option available under current circumstances. Financial analysts have noted the high interest rate, describing the facility as a costly method to secure necessary liquidity.