Norwegian raises new capital in “oversubscribed” measures

Norwegian (DY, Oslo Gardermoen) expects to exit its restructuring process this week once it completes the raising of NOK6 billion kroner (USD717 million) it had been planning through the sale of perpetual bonds, a private placement of new shares, and a rights issue. Courts in Dublin and Oslo had required that the airline raise at least NOK4.5 billion (USD538 million) as part of a long and complex scheme to emerge on May 26 from bankruptcy protection in the Irish and Norwegian courts, which it began in December. The company then opted to try to raise an additional NOK1.5 billion (USD179 million) to strengthen its resources as the pandemic continues to bring uncertainty to travel in Europe. The private placement of new shares was already “significantly oversubscribed”, the carrier outlined in a preliminary statement on May 21, raising gross proceeds of NOK3.73 billion (USD446 million). The bond sale added a further NOK1.875 billion (USD224 million) from eligible existing creditors. The rights issue to shareholders was also oversubscribed – “preliminary counting consequently indicates an oversubscription of approximately 393%” – and the final results for this are to be settled on May 25 and will be published shortly thereafter. The rights-issue offer shares and the private-placement offer shares are expected to be issued on or around May 26 so that they can be tradeable on the Oslo Stock Exchange on or about May 27, the statement said. DNB Markets, a part of DNB Bank, Norway’s largest financial services group, is acting as sole global coordinator and joint bookrunner for the capital raise, while Nordic investment bank ABG Sundal Collier is also joint bookrunner. New York-based finance specialist Seabury Capital has been hired as an adviser.