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Norwegian increases capital raise target
After securing court approval to press ahead with its restructuring process, Norwegian has issued an update on its plan to raise fresh capital.
It has raised the upper limit for raising capital up to a possible NOK6 billion (about £515 million).
It also shared that additional aircraft orders worth NOK85 billion have been cancelled.
"The capital raise has been revised to between 4.5 and 6billion kroner, this is due to several factors. We want to take a conservative approach at a time when the pandemic and travel restrictions continue to create unpredictability in the travel sector," said Jacob Schram, CEO of Norwegian.
"Therefore, we must take this uncertainty into account in our forward planning strategy. At the same time, we have also taken into consideration feedback from investors, as well as dialogue with our board."
"The new Norwegian, with a simplified organisational structure and operating model, will be a significantly more competitive company than before. This will not only be the case when compared to how we were before the pandemic struck, but also in view of the competitive environment" Schram added.
CFO Geir Karlsen said: "We greatly appreciate the long-term support that we have already received for the restructuring and capital raising from individual investors during this time of unpredictability."
"The debt will be reduced by between NOK62 and 65 billion compared to the end of 2019, and we have cancelled aircraft orders. Total debt will therefore be between NOK16 and 20 billion, of which NOK 6-7 billion is related to our aircraft fleet" Karlsen said.
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