Norwegian Air has issued an update on the terms for its planned capital raising of up to NOK 6 billion.

The embattled carrier said up to NOK 1,875 million would come from an offering of new capital perpetual bonds, with a rights issue raising up to NOK 395 million.

A private placement of new shares will then be “limited to an amount so that the total gross proceeds from the capital raise will not exceed NOK 6,000 million”.

The Scandinavian budget carrier last month said it was increasing the upper limit for its capital raise after winning approval for its financial restructuring from courts in Ireland and Norway.

In the latest statement, it confirmed: “Subject to completion of the restructuring proposal and based on the voluntary restructuring in May 2020, the company has since the end of 2019 reduced total debt by approximately NOK 63-65 billion and terminated aircraft orders of approximately NOK 85 billion in aggregated value.”

It intends to emerge from the restructuring with a fleet of 51 aircraft which will operate a short-haul network primarily in Norway and the Nordics or from Norway and the Nordics to continental Europe.

The airline said its total debt on completion of the process would be approximately NOK 16-18 billion, of which NOK 5.8-6.3 billion would be in aircraft-related debt, while its cash balance would be approximately NOK 7 billion.