Norwegian Launches Proposal to Capitalize 1.1 Billion Debt

The company thus hopes to meet the requirements to access state aid

Norwegian will present a proposal for the conversion of debt into equity of up to $ 1.2 billion (€ 1.1 billion), under the agreement based on negotiations with lessors and bondholders.

The plan proposes the conversion of 60% of the debt into equity with respect to the issues of bonds NAS07 and NAS08; 85% of the debt in capital with respect to the convertible bonds and a minimum threshold of concession by the lessors of 500 million dollars (461 million euros).

After the debt-to-equity conversion, but before the proposed capital increase of NOK 400 million (€ 34.8 million), current shareholders will retain 5.2% of the company’s share capital.

The meetings of bondholders who must decide on the conversion of debt into capital will be held this Thursday, April 30, while the extraordinary shareholders’ meeting that must decide on the capital increase will take place the following Monday, May 4 .

In the event that the previous debt conversion into capital proposals and the capital increase are resolved and completed in the terms described above, it is estimated that the company will have an ‘equity ratio’ -relationship between indebtedness and own funds- – more than 8% required by the Norwegian Government to have access to the package of state guarantees amounting to 3,000 million Norwegian kroner (261 million euros).