Norwegian has been granted a delay in repayments on US$380 million bonds after using its take-off and landing slots at Gatwick airport as security.
Bondholders approved a two-year extension to NAS07 and NAS08 to 2021 and 2022, respectively, providing the low-cost carrier with a financial lifeline as it continues a strategy to turn a profit following a period of extensive growth.
The airline had said its runway slots at Gatwick would prove attractive as security for the extension, with previous transactions ‘demonstrating the ability to monetise’ such slots.
Acting CEO Geir Karlsen said: “We’re pleased with the bondholders’ decision to amend the bonds as it will give us added financial headroom going forward. We believe it demonstrates faith in our strategy and support of the important measures Norwegian is undertaking to return to profitability. The company’s operational performance continues to improve, and we are on track to reach the targeted cost reductions of two billion NOK [£180 million] in 2019.”
Norwegian reported a 3 per cent increase in unit revenue in August, showing there are signs of recovery after delaying deliveries of Airbus aircraft, offering an underwritten rights issue and selling its shares in banking firm Norwegian Finans Holding ASA earlier this year.
Commenting on the August results, Karlsen added: “Our growth is slowing down, in line with our strategy, and we are glad to see an increased unit revenue this month compared to the same month last year. We are also pleased that bookings are looking solid going forward, especially on intercontinental routes and in the Nordics.”
norwegian.com