airBaltic bondholders approve amendments to bond terms

Bondholders of airBaltic have approved all proposed amendments to the terms of the company's outstanding bonds at a general meeting. The meeting was attended by holders representing more than 25% of the total outstanding principal amount, and more than 75% of those voting supported each resolution — meeting both the quorum and majority requirements.

What changes

The approved amendments include several measures. Interest payments on the bonds due on 14 August and 14 November this year will not be paid out in cash but instead capitalized, meaning they will be added to the bonds' principal amount. The company also receives a temporary waiver from the minimum liquidity requirement set out in the bond terms, valid until 14 November 2026, as well as a temporary waiver from certain requirements related to the bond servicing reserve account. Additionally, certain notice periods and quorum requirements for future bondholder meetings have been adjusted.

Purpose and context

The measures are intended to strengthen airBaltic's liquidity and provide a stable foundation for its continued operations while the company works with key stakeholders to finalize the terms of interim financing. Bondholders did not vote on the interim financing itself at this meeting, as the matter was not on the agenda — a fact bondholders had been informed of in advance. Further details will be shared once the financing terms have been developed.

The amendments tie into airBaltic's revised business plan, which aims to strengthen the company's long-term financial sustainability by concentrating its route network around Riga as its main base, optimizing the use of its Airbus A220-300 fleet, and building a structurally lower cost base.

The company stressed that the approved decisions ensure continuity of operations — its flight schedule is being carried out in full and on time, and passengers can continue to book future travel with confidence. The approved changes will be formally incorporated into the bond issuance's base documentation.