Latvia’s Air Baltic outlines possibilities on mid-2024 bond maturity, cites going-concern status

Chicago, Nov. 27 – Air Baltic Corp. AS outlined possibilities for refinancing its €200 million of 6¾% bonds due July 2024 (ISIN: XS1843432821) after the company pulled an offering of bonds that would have financed an early redemption.

With its most recent reporting of financial results, the company noted that management is exploring, with advisers, private debt refinancing which could be available as early as the first quarter in 2024.

Alternatively, if market conditions prove better in the first quarter of 2024 than they were in the third quarter of 2023, Air Baltic might reapproach the public debt markets and the company continues in active dialogue with a range of banks regarding this option.

The airline may also engage its shareholders (including the controlling shareholder) regarding any of the above options to provide financing on market terms.

A fuller plan is expected by early 2024.

In the notes, Air Baltic flagged that the use of going-concern principle is appropriate for the next 12 months.

As of Sept. 30, the airline had negative equity of €72 million. The group’s current liabilities exceeded its current assets by €352 million and the cash balance at the end of the period was €33.7 million.

Air Baltic is a government owned airline in Latvia.

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