Viva Aerobus — From #4 to #1 with New Private Capital
A $150 million convertible equity capitalization for Viva Aerobus, executed in the middle of the pandemic, that not only saved the airline but propelled it to the #1 position in Mexico.
The Challenge
One of our most challenging transactions was the $150 million convertible equity capitalization for Viva Aerobus, an efficient, low-cost carrier which in 2021 ranked as Mexico's fourth largest airline. In the middle of the pandemic, the airline required quick but friendly capital in order to continue operations in the face of nationwide cancellations of flights that also threatened Aeroméxico and caused other airlines such as Interjet to disappear.
Our Approach
NYBAY, working on an exclusive basis with the management of the company and the Alcántara Family, raised the needed amount in just a few months, using a structure that allowed for an equity valuation to be measured in the future, not in the present. We then conducted a competitive process among many potential investors.
Results
- $150 million raised in a matter of months, at the height of the pandemic.
- Our clients chose CarVal Investors as their financial partner.
- The transaction not only saved the airline, but propelled it to the #1 position in Mexico.
