Norwegian requests extensions for two bond issues valued at 346 million

Norwegian Air Shuttle (NAS) has requested extensions of two of its bond issues (NAS07 and NAS08) before the Oslo Stock Exchange, valued at 380 million dollars (346 million euros) until November 2021 and February 2022 , respectively, so it will offer holders of these unsecured issues a guarantee package backed by its portfolio of ‘slots’ (take-off and landing rights) at London-Gatwick airport, independently priced with a higher value to both emissions.

The airline emphasizes that these ‘slots’ will be “a simple financial guarantee” and that “they will not affect” their operations in Gatwick, since they serve to facilitate the connection of passengers between their European short-haul and long-haul intercontinental networks.

This initiative to use Gatwick slots as an endorsement was already announced as a potential source of financing in the last presentation of results in the first half of 2019 and is part of the company’s strategy to move from growth to profitability, as was the sale last week of the company’s shares to Bank Norwegian. In a relevant fact of the Oslo Stock Exchange, the company notes that previous transactions in the market “demonstrate the ability to monetize the Gatwick slots.”

For this operation, NAS has requested the Nordic administrator AS as a bond administrator to convene shareholder meetings in the context of requesting the modification of the terms and conditions of the NAS07 and NAS08 bonds due on December 11, 2019 and 7 August 2020. respectively.

In addition to receiving asset support, NAS proposes to modify the structures of the purchase options to include increases in the purchase option premiums, including the redemption at maturity of 105% of the nominal value.

IMPROVEMENT OF OPERATING PERFORMANCE

The company also notes that its operating performance continues to improve since the results of the first half of 2019 and maintains its prospect of reaching an Ebitdar of between 6,000 and 7,000 million Norwegian kronor (between 600 and 700 million euros) in 2019.

In addition, it expects it to continue improving during 2020 despite problems with Rolls-Royce engines in the company’s dreamliners and the grounding of the Boieng 737 MAX fleet, which has had an approximate impact of 1.5 billion of Norwegian crowns (150 million euros).

During this year, the company has established as a priority the achievement of forecasts to reduce costs by 2 billion Norwegian kronor (200 million euros) and continue to improve during the years 2020 and 2021, as well as the sale of its stake in Norwegian Finans Holding for a price of 2,218 million Norwegian kronor (221 million euros). The net value of this operation, 934 million Norwegian kronor (93 million euros) will be received during the fourth …

On the other hand, the company indicates that the negotiations regarding the creation of a joint venture for a part of the aircraft fleet are moving forward and will be announced when they are completed.