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The company’s CEO, Jacob Schram, previously promised shareholders “a substantial discount” on the share issue. On Tuesday, the subscription price was fixed.
Norwegian CEO Jacob Schram and CFO Geir Karlsen.
Håkon Mosvold Larsen
published:,
In a statement Tuesday, Norwegian announces the subscription price for Norwegian’s issue of one crown per share. With that, the company will obtain between NOK 300 and 400 million.
In comparison, Norwegian stocks ended Monday’s trading day at NOK 4.8, down 9.77 percent.
Some of the owners of convertible bond loans to Norwegian have also signed so-called subscription letters requiring bondholders to subscribe for shares of up to $ 10.11 million, he continues.
Shareholders agreed to this
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The previous Tuesday, Finansavisen wrote that if the Norwegian Board of Directors set the subscription price for the Norwegian share issue to more than NOK 1 per share, the bondholders’ participation guarantees fell. Therefore, the price would probably be set between NOK 0.70 and NOK 1 per share, Finansavisen explained.
In the FA’s experience, the owners of the Norwegian convertible bond, which has also provided guarantees to participate with up to NOK 100 million in the issue of shares, have demanded that the issue be set in the range between NOK 0.50 and NOK 1 per share.
The so-called conversion rate was released on Monday. This is the price that is used when bondholders and leasing companies are going to convert around NOK 10.8 billion in debt to new company shares. It landed at $ 3.80.
This is absolutely necessary for the company to participate in the state crisis package, which requires Norwegian to have a capital ratio of eight percent.
Norwegian claims that interested parties can subscribe for shares starting at 09:00 on Wednesday. The subscription period was until May 14 at 4:30 p.m.
Essential Loan Guarantee
It was long uncertain whether the Norwegians’ creditors would save the company from the debt crisis that became too heavy to bear when all the planes were grounded as a result of the Corona crisis.
It was lengthy negotiations between the parties that finally reached an agreement, but on Tuesday the leasing company Aercap, soon to be one of the company’s largest shareholders, eased the veil in a conference call.
– It is extremely unusual for us to have capital debts. We did it with Norwegian, mainly because they have state support, but generally we won’t, said Aercap CEO Aengus Kelly.
