Leasing companies will convert at least SEK 8,560 million into shares – E24

Norwegian leasing companies have agreed to convert at least $ 840 million, equivalent to NOK 8.56 billion, from debt to equity.

According to a company update, Thursday is the last day to request subscription to the company’s share issue.

According to the company, a “significant number” of leasing companies support the conversion of debt into shares.

Norwegian previously obtained support to convert $ 730 million in lease debt into shares.

The company will continue to discuss with other leasing companies to convert more of the debt into shares.

The support Norwegian has now secured does not include the so-called “hourly power” agreement. This means that the airline will only pay leasing companies for the planes that they can use until Easter next year, CFO Geir Karlsen said at a press conference on May 4.

Can dump actions

Although leasing companies now become Norwegian’s major shareholders, it is not certain that they will remain owners for long.

Earlier this week, attorney Per Morten Christiansen of the law firm Selmer told E24 that he believes the leasing companies will remove the shares.

– I think there is a clear risk that the leasing companies will sell their shares. They are not intended to be airline owners, but rather a form of lender by owning and leasing planes, Christiansen said.

The attorney is an expert in refinancing and restructuring large loans.

Management warns

That analysis is also supported by others.

“Leasing companies obviously don’t want to have airlines,” said leasing analyst Helane Becker of investment company Cowen.

Norwegian garnered adequate support from the leasing companies a few minutes before this week’s general meeting, where shareholders ended up voting for the management bailout plan.

IN The prospectus for the issue of Norwegian shares He advises management that leasing companies may intend to sell the shares they receive because they may not have a long-term horizon on their property.