Danske Bank: Norwegian Air Shuttle – updating on capital raise

NAS (MW) has updated the market regarding its capital raise. Subject to completion of the restructuring proposal NAS has previously indicated an overall capital raise of NOK4.5-5.0bn. Due to the Covid-19 uncertainties NAS have increased the proposed capital increase to a 4-5-6.0bn, including a new capital perpetual bond with gross proceeds of up to NOK1.875bn of which the Norwegian Government has previously committed to sign up for up to NOK1.5bn. Overall the new investors (rights issue and perp bond combined) will receive 70.0-75.7% of the post-restructuring share capital. Unsecured creditors and customer creditors will hold 20.6-25.4% of the restructured company through participation in the capital raise through a pro rata cash payment or a convertible debt claim with 7 years maturity and NIBOR+1% interest. NAS expects the capital raise to commence around 10 May 2021 with targeted closing around 26 May 2021.