Norwegian has completed a restructuring that will see AerCap (15.9%) and BOC Aviation (12.7%) take major shares in the company after converting their lease obligations into equity.
In addition to completing its NOK 12.7 billion debt-for-equity swap, Norwegian has been granted approved for a state loan guarantee of NOK 3 billion.
The lease obligations converted includes interest accrued on the debt being converted until and including the last interest payment date. Starting July 1 lease payments will be $12 million per month.
Norwegian has also agreed with its individual lessors to redeliver three aircraft prior to the contractual redelivery dates.
“I want to thank everyone who has supported the company during this unprecedented crisis that has affected the entire the airline industry: The Government and Parliament; customers; employees: shareholders; leasing companies; creditors; bondholders, the travel industry and other Norwegian supporters”, said chief executive Jacob Schram.
“Now that we can access the state loan guarantee, we can continue to transform the company. Through this process, the belief in New Norwegian and the company’s strategy have been confirmed by shareholders, the market, bondholders, leasing companies, other creditors and lenders.
Nevertheless, the months ahead will remain challenging and with a high degree of uncertainty for the industry. Norwegian will still need to collaborate closely with a number of creditors as the company currently has limited revenues,” he added.
Norwegian chief financial officer Geir Karlsen said the debt-for-equity swap had been a very challenging process, involving parallel negotiations and constant negotiations for more than two months.
“The negotiations have been tough, but constructive with significant contributions from all stakeholders. These are extraordinary circumstances and we have experienced an increasing degree of support and understanding and are satisfied that we have reached this milestone”, said Karlsen.
ABG Sundal Collier ASA, Danske Bank, Norwegian branch and DNB Markets, are acting as managers. Advokatfirmaet BAHR is legal advisor to the Company. Advokatfirmaet Thommessen is acting as legal advisor to the managers.