September 11, 2019 / 6:41 PM / 2 months ago

REFILE-Norwegian Air says bondholders look set to agree to new debt terms

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OSLO, Sept 11 (Reuters) - Norwegian Air said on Wednesday it had a preliminary indication that enough bondholders will accept the amended terms it has sought for an extension on repaying two of its bonds.

The loss-making budget airline asked bondholders on Sept. 2 for up to two more years to pay back $380 million of unsecured debt, the latest attempt to shore up its finances.

The airline said it had confirmation from its financial advisors of “reasonable visibility of the receipt of positive voting undertakings and proxies representing more than 2/3 of the total voting bonds relating to NAS07 and NAS08”.

It added that the calculation of the number of votes is preliminary only and remains subject to potential adjustments.

Norwegian Air said on Tuesday it would propose to change the premium payable in connection with voluntary repayment, known as a call, for NAS07 and NAS08 bonds.

It said it would increase the call price to 105%, keeping the redemption price at 105% at maturity.

The company’s bonds, which mature in December 2019 and August 2020, will be extended to November 2021 and February 2022 if the bondholders agree to the new terms.

A bondholders’ meeting will take place on Sept. 16, when the final result will be announced. (Reporting by Victoria Klesty; Editing by Alexander Smith)

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