Norwegian set to raise new funds

Wednesday, April 14, 2021

Norwegian airlines has updated the market on the forthcoming capital raise, setting an upper limit of NOK6 billion (£500 million). The low-cost carrier said cash would be used to sharply reduce debt. In addition, aircraft orders amounting to NOK85 billion have been cancelled. Jacob Schram, Chief Executive, Norwegian said in a statement that the capital raise has been revised to between NOK4.5 and six billion due to several factors.

He mentioned that the airline wants to take a conservative approach at a time when the pandemic and travel restrictions continue to create unpredictability in the travel sector. He said that the uncertainty must be taken into account in the forward planning strategy. He also said that at the same time the company has also taken into consideration feedback from investors, as well as dialogue with the board.

He shared that the new Norwegian, with a simplified organisational structure and operating model, will be a significantly more competitive company than before and it will not only be the case when compared to how the carrier was before the pandemic struck, but also in view of the competitive environment envisaged across the aviation industry in the future.

Geir Karlsen, Chief Financial Officer, Norwegian added that company greatly appreciate the long-term support that it has already received for the restructuring and capital raising from individual investors during this time of unpredictability as a result of the pandemic and informed that the debt will be reduced by between NOK62 and 65 billion compared to the end of 2019, and hence the airline has cancelled aircraft orders worth NOK85 billion. It was mentioned that total debt will therefore be between NOK16 and 20 billion, of which NOK6-7 billion is related to the aircraft fleet.

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