Norwegian Air won support from aircraft lessors to convert $750 million of debt into equity ahead of a crucial shareholder meeting today (Monday).
The minimum conversion is up from $550 million previously announced.
“With the significant contributions from lessors and bondholders, the company expects to convert more than NOK 10 billion ($958 million) in debt to equity,” the low cost carrier said.
The carrier expects to “significantly outperform” an 8% equity ratio requirement in a Norwegian state aid package.
The majority of Norwegian Air shareholders voted in favour of all proposed resolutions at the extraordinary general meeting.
The airline will now proceed with private placements through conversion of bonds and lease debt to shares, as well as a public offering of up to NOK400 million ($38.4 million).
The airline also expects “significant concessions” on future lease costs of around $200 million.
If the debt conversion and share sale are successful, the carrier will be able to to tap government guarantees of up to NOK 2.7 billion on top of NOK 300 million it has already received.
As a result of the financial actions, the carrier said it had “laid a solid foundation for New Norwegian and a strong return to the skies once the Covid-19 situation improves”.
