|Bid||3.8330 x N/A|
|Ask||3.8390 x N/A|
|Day's range||3.4040 - 3.9200|
|52-week range||1.5000 - 48.1700|
|Beta (5Y monthly)||1.14|
|PE ratio (TTM)||N/A|
|Earnings date||28 Aug 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||224.45|
Norwegian Air <NWC.OL> posted a wider first-quarter loss as the coronavirus crisis froze global travel, it said on Thursday, days after completing a financial rescue in which creditors took control of the carrier. The pioneer in low-fare transatlantic travel reported a January-March pretax loss of 3.28 billion Norwegian crowns (270.89 million pounds) versus a loss of 1.98 billion a year earlier.
Lessors including AerCap and BOC Aviation <2588.HK> are now the biggest shareholders in Norwegian Air <NWC.OL> after the budget carrier completed a debt restructuring and secured a long-sought credit guarantee from Norway's government. Bondholders, lessors and shareholders recently agreed to a 12.7 billion crowns debt conversion and share sale that boosted Norwegian's equity, meeting a key aid condition. Major lessor Aercap <AER.N> now holds a 15.9% stake after converting lease obligations into shares.
Budget airline Norwegian Air looks likely to live on in a very slimmed-down form after completing a cut-price share sale and winning bondholders' backing for a refinancing, after the coronavirus crisis compounded the carrier's financial problems. The airline's shares initially plunged 51% to 2.51 crowns on Monday before recovering to trade at 4.0 crowns at 1046 GMT, still down 22% on the day. The debt conversion and share sale will allow Norwegian Air to tap government guarantees of up to 2.7 billion crowns, which hinge on a reduction in leverage, in addition to 300 million crowns it has already received.
You can share your thoughts with Thyagaraju Adinarayan (email@example.com), Joice Alves (firstname.lastname@example.org) and Julien Ponthus (email@example.com) in London and Stefano Rebaudo (firstname.lastname@example.org) in Milan. The BoE is not the only central bank which seems reluctant to join the sub-zero club!
You can share your thoughts with Thyagaraju Adinarayan (email@example.com), Joice Alves (firstname.lastname@example.org) and Julien Ponthus (email@example.com) in London and Stefano Rebaudo (firstname.lastname@example.org) in Milan. Money market funds skyrocketed recently, even more than during the financial crisis, but sitting on cash might not be the best strategy, despite many unresolved coronavirus risks. There is a lot of uncertainty around: Investors worry about Donald Trump's rhetoric on the pandemic, which is putting further selling pressure on stocks.
The views expressed are his own.) Stronger than-expected Chinese export numbers might boost speculation that the Asian giant's economy can recover quickly and come to the aid of global growth. Another warning on the world economic outlook came from the Bank of England which said the coronavirus crisis could cause the biggest economic slump in 300 years. Markets are also wary of developments in Turkey where the lira has fallen to a record low of 7.25 against the U.S. dollar.
Norwegian Air <NWC.OL> has secured vital funding from shareholders as it battles to survive the novel coronavirus pandemic that drove down April passenger volumes by 98.7%, the budget carrier said on Thursday. The deeply-discounted share issue of up to 400 million Norwegian crowns ($39 million), central to the airline's plan of qualifying for state credit guarantees, has been oversubscribed by investors, it added. Shareholders, bondholders and lessors agreed this week on a plan to convert nearly $1 billion of debt into equity and raise up to 400 million crowns from the sale of new shares.
You can share your thoughts with Thyagaraju Adinarayan (email@example.com), Joice Alves (firstname.lastname@example.org) and Julien Ponthus (email@example.com) in London and Stefano Rebaudo (firstname.lastname@example.org) in Milan. Morgan Stanley estimates "volume-weighted euro high yields default rates of around 7% over the next year, above the 2009 peak," while in leveraged loans the default rate will be close to 9%, below the 11% of the GFC. The median exposure to CCC ratings is currently at 6%, according to Morgan Stanley and its analysis implies "average CCC buckets going to 10-12% over the next year," with 8% of the CLO collateral ending up in the defaulted bucket.
You can share your thoughts with Thyagaraju Adinarayan (email@example.com), Joice Alves (firstname.lastname@example.org) and Julien Ponthus (email@example.com) in London and Stefano Rebaudo (firstname.lastname@example.org) in Milan. EUROPEAN AIRLINES: BEING GROUNDED IS THE EASY PART! There are a few industries in the travel and leisure segment which might actually find it much tougher in the post-lockdown world.
Norwegian Air <NWC.OL> will sell new shares at a 79% discount to the latest traded price on the Oslo Bourse, the budget carrier said on Tuesday as it seeks to boost its equity in order to qualify for Norway's government aid package. Shareholders on Monday approved a plan to convert nearly $1 billion of debt into equity and raise up to 400 million crowns (31.4 million pounds) from the sale of new shares to help the airline survive the coronavirus pandemic. The company plans to raise between 300 million and 400 million crowns, and has so far secured commitments from investors planning to buy shares for more than 100 million crowns, it added.
Norwegian Air shareholders backed its financial survival plan on Monday, with more than 95% of votes cast supporting the conversion of nearly $1 billion of debt into equity and raising more cash from its owners. The rescue deal prepares the ground for a relaunch of the company in a scaled-down version when the coronavirus crisis subsides. "This has been perhaps the most exciting financial thriller Norway has ever seen," Chief Executive Jacob Schram told a news conference after Monday's shareholder meeting.
Norwegian Air's <NWC.OL> shareholders gave their backing on Monday to the company's financial survival plan, with about 95% of votes cast supporting the conversion of debt into equity, financial daily Dagens Naeringsliv reported on Monday. Approval of the scheme was vital to the company's plan to tap government credit guarantees as it seeks to overcome the novel coronavirus pandemic. The company has not confirmed the outcome of the vote, which is held online and with access for shareholders only.
Norwegian Air <NWC.OL> said on Sunday it had secured support from enough bondholders for a $1.2 billion (959.85 million pounds)debt-for-equity swap, a vital step in helping it survive the coronavirus crisis. The budget airline is poised to run out of cash by mid-May without approval for its plan, which involves handing over most of the company to its lessors and bondholders. The next step for Norwegian Air is to secure support from its lessors for its rescue plan, ahead of an extraordinary general meeting on Monday to get approval from shareholders.
Norwegian Air said on Sunday it had secured support from enough bondholders for a $1.2 billion debt-for-equity swap, a vital step in helping it survive the coronavirus crisis. The budget airline is poised to run out of cash by mid-May without approval for its plan, which involves handing over most of the company to its lessors and bondholders. The next step for Norwegian Air is to secure support from its lessors for its rescue plan, ahead of an extraordinary general meeting on Monday to get approval from shareholders.
Growing rapidly in the last decade to become Europe's third-largest low-cost airline and one of the few to apply the budget model to transatlantic flights, Norwegian had accumulated debts and liabilities of close to $8 billion by the end of 2019. Following are key dates in the company's 27-year history. April 30: Bondholders are due to vote on the company's debt-to-equity deal after 1400 GMT.
The fate of Norwegian Air was in the balance on Friday after a deadline passed overnight for bondholders to vote on a rescue package for the transatlantic budget airline. Bondholders were set to start a meeting at 1400 GMT on Thursday to vote on the airline's debt-to-equity plan, the first major test of its rescue efforts amid the coronavirus outbreak. Since then, Norwegian Air has sent no messages about the outcome.
Norwegian Air's <NWC.OL> bondholders have turned down a proposed debt-to-equity swap, casting doubt on a plan that is vital to help the indebted airline survive the COVID-19 pandemic, although talks will still continue. It involves swapping up to $1.2 billion of debt into equity and hands over most of the ownership of the company to lessors and bondholders. Holders of three of the company's four bonds gave sufficient support to approve the plan, but support among holders of the fourth bond fell short of the minimum requirement, Norwegian Air said on Friday.
(Bloomberg Opinion) -- Michael O’Leary knows plenty about state aid. The Irish budget airline he runs, Ryanair Holdings Plc, has been the focus of various subsidy disputes over the years, related to the small airports it serves. Still, you can understand his frustration at the way European governments are showering bailout money on a handful of mostly inefficient carriers, while those he views as more deserving airlines go without.He’s threatened to go to court to force France and other wealthy countries to share rescue money out more equitably, Bloomberg News reported last week, and he’s compared cash-strapped Deutsche Lufthansa AG of behaving like a “crack cocaine junkie.” Thanks to the largess of Paris and Berlin, Air France-KLM and Lufthansa could end up with almost 20 billion euros ($21.7 billion) of taxpayer cash between them, even though they had inferior profit margins and balance sheets prior to this crisis.It’s not just Ryanair that’s losing out. International Consolidated Airlines Group, which owns British Airways, is more profitable than its French and German rivals and it probably won’t get anywhere near as much bailout money (and isn’t asking for it).(2)The disjointed way Europe is going about these rescues threatens to distort competition and makes a mockery of the imperative that responsible companies must save for a rainy day. Ultimately, it’s who you know and where you’re from that counts.Last month Brussels relaxed state-aid rules to help hard-hit industries overcome a crisis it deems not of their own making — though that’s debatable for airlines, which help spread the virus around the world, albeit unwittingly. As long as they abide by certain conditions, the European Commission is content for governments to replenish whatever cash flows out of the door because of coronavirus restrictions and to recapitalize businesses.So far it hasn’t created a centralized pot of money to finance and adjudicate these rescues more fairly across the European Union, as a recent Bloomberg Opinion column recommended. Instead companies have to ask their national governments for the cash.Compared to some weaker European nations, France and Germany have more financial firepower to write big bailout checks and fewer worries about whether the funds they provide will be repaid. They also appear to have few philosophical qualms about propping up domestic companies, which in turn gives those businesses a remarkable amount of leverage in bailout talks.Lufthansa has brazenly threatened to seek creditor protection if the details of a more than 8 billion-euro German rescue aren’t to its liking. In contrast, the terms of Oslo’s support for Norwegian Air Shuttle ASA are severe. Similarly, Britain says airlines will get help only once they’ve exhausted other avenues, including tapping billionaire, tax-haven domiciled shareholders for more cash. On Tuesday, British Airways warned that it wouldn’t be getting a bailout and said as many as 12,000 jobs would be cut.Unlike in the U.S, most European airlines haven’t frittered away their money on share buybacks because they didn’t have much money to begin with. The industry is more fragmented and hence profits have generally been meager. Barring a few exceptions such as IAG and Ryanair, airlines haven’t been flush with cash.Even before the Covid-19 crisis, Lufthansa had 6.7 billion euros of net debt, a similar amount of pension liabilities plus about 4 billion euros of advance customer payments, much of which it must now refund. It has about 4.4 billion euros of liquidity left, half as much as IAG. The market value of the German carrier’s shares is less than 4 billion euros. It’s not surprising that governments want to protect airlines because they provide vital international connections for passengers and trade links. But they’re also heavy polluters. While Air France-KLM’s bailout includes environmental commitments, massive amounts of taxpayer cash are being diverted to propping up a dirty industry whose prospects were starting to look less rosy before the pandemic struck.Some airlines will go bust, reducing competition, but passenger demand will probably be lower for years. Long-haul and business travel will probably take longest to recover as companies worry that it’s not safe to put staff on planes. After being bailed out, Lufthansa and Air France-KLM will have to divert more of what little cash they generate to servicing a bigger debt pile. No wonder banks and capital markets aren’t willing to lend airlines more cash without government guarantees.Before this crisis, Ryanair’s strategy was to expand quickly and drive down fares so that rivals with higher costs would go out of business. That strategy falls down if states recapitalize less efficient airlines when they get into trouble. The lesson for the famously abrasive O’Leary is to devote less time trying to outcompete rivals and more time getting cozy with politicians.(1) IAG, like other airlines, is making use of government wage subsidies for furloughed employees.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Norwegian Air <NWC.OL>, the budget carrier that is fighting for its survival, has made some amendments to the terms of its debt-to-equity conversion plan in response to demands from bondholders, it said on Tuesday. On Monday the airline published the full details of a plan that may help it survive the coronavirus outbreak, if creditors and shareholders give it a green light. "The revised proposal to the bondholders reflects that the company continues to make progress with its other stakeholders," Norwegian Air said in a statement.
Norwegian Air <NWC.OL> could run out of cash by mid-May unless its proposed financial rescue plan is approved by creditors and shareholders, the budget carrier warned on Monday. If bondholders, leasing companies and shareholders give a green light, the plan may help Norwegian survive the coronavirus outbreak, which has grounded 95% of its fleet, leaving just seven aircraft in operation. The move would allow Norwegian to tap government guarantees of 2.7 billion crowns ($255 million), which are dependent on the company reducing its ratio of debt to equity, and which would come on top of 300 million crowns it has already received.
Norway's parliament voted through a new company restructuring law on Friday that could help save Norwegian Air <NWC.OL> and many other companies from potential bankruptcy as a result of the restrictions to stem the spread of COVID-19. The legislation replaces current regulation on debt negotiations and relaxes rules for converting debt into equity. The airline is seeking to convert debt to equity to qualify for state guarantees in a bid to survive the coronavirus crisis, which has grounded all but a handful of its nearly 160 aircraft.
Norwegian Air <NWC.OL>, the budget carrier that changed the way people travel across the Atlantic, is fighting for survival as the coronavirus pandemic deepens the company's financial straits, forcing it to furlough staff and cancel flights. WHY DOES THE AIRLINE MATTER TO NORWAY? While governments across the world are trying to shore up national airlines, Norwegian Air is particularly valuable to its home country because of Norway's vast geography, which stretches more than 2,200 kilometres across fjords and mountains, with few train lines to transport locals and tourists.
(Bloomberg Opinion) -- Aviation has always carried a whiff of the pirate ship about it. Richard Branson, founder of Virgin Atlantic Airways Ltd., likes to describe himself as an “adventurer and troublemaker,” and once claimed to have found buried treasure on his private Caribbean island as a prank.Right now, the buccaneering executives who have driven the airline industry since the 1980s, when the era of state-owned flag carriers started to break down, are facing their appointment with the gallows.Branson’s Australian affiliate, Virgin Australia Holdings Ltd., was taken into administration Tuesday after years of losses. Virgin Atlantic will go the same way if it doesn’t receive a government loan, Branson wrote in a letter to employees Monday.Other carriers may be heading in the same direction. South African Airways is planning to lay off its entire workforce after years of losses, Bloomberg News reported last week; Norwegian Air Shuttle ASA’s debt-for-equity workout is heading down to the wire; bonds issued by Colombia’s Avianca Holdings SA due in 2023 are trading at 20 cents on the dollar, while PT Garuda Indonesia sukuk due in June are at 48 cents.The major American players aren’t immune, either. Five-year credit default swaps protecting against non-payment of American Airlines Group Inc.’s debt have soared to 2,883 basis points, with United Airlines Holdings Inc. on 960 basis points and Delta Air Lines Inc. at 694 basis points. These are fear-and-loathing levels: Lehman Brothers Holdings Inc.’s swaps peaked at 707 basis points on the eve of its 2008 collapse.There are plenty of national champions among that group of walking wounded. Still, the differing experiences of Virgin Australia and its 20% shareholder Singapore Airlines Ltd. suggest that robust state ownership, for so long considered a millstone for ambitious airline companies, is turning into a life-raft.Singapore’s $10.5 billion capital raising last month — backed by its largest shareholder, state-owned investment company Temasek Holdings Pte. — is the most striking instance of support offered to an airline in the current crisis. Less than a tenth of that sum would have been sufficient to provide the A$1.4 billion ($882 million) rescue loan that Virgin had sought from the Australian government. There’s no legal barrier to Singapore buying out the remaining 80% of the company. Consolidating control would have given it a stronger foothold in a domestic aviation market that it once coveted, at a time when only within-country flights are likely to be operating in significant numbers for some time. It’s telling, then, that the company turned down this option.Since the dawn of commercial flying, aviation businesses have had a complicated relationship with nation states. After an initial flurry of private enterprise, most of the global industry was nationalized during World War II and remained that way until the deregulation of the 1980s.In recent decades, former flag carriers such as British Airways have been privatized and at times amalgamated into cross-border giants, while budget airlines have swallowed up short-haul market share to become some of the most profitable businesses in the global industry. The only state-owned airlines that have prospered have been those, like Singapore Air and Emirates, that have been able to count on the traffic of busy hub airports and the unquestioning backing of their governments.For all that, aviation is anything but a free market. Most of the world’s airline routes are oligopolies where only a handful of carriers compete. The number of seats available between countries is still decided in government-to-government treaty talks, which often limit the ability of commercial carriers to operate. Airlines remain a vital piece of national infrastructure, and can throw themselves on the mercy of governments if things get tight.We may be on the brink of a realignment as dramatic as the 1980s privatizations. The Austrian, Swiss and Belgian governments are all in talks with Lufthansa AG about support for the former flag-carriers that it absorbed in recent decades. Air France-KLM’s state shareholders in Paris and The Hague are looking to do the same. In most cases, it’s doubtful whether these attempts will be sufficient to survive an extended crisis. It’s hard for governments to argue that full-service airlines are a national interest as vital for European nations as they are for an island-state like Singapore, especially when rail travel causes so much less carbon pollution.The result is likely to be a hollowing out of the middle ground. Budget airlines such as Southwest Airlines Co., Ryanair Holdings Plc and Interglobe Aviation Ltd. have always known that they had no hope of government support. As a result, their more conservative balance sheets, lower costs and smaller shares of long-haul traffic given them the best chances of survival. True state champions such as Singapore Air and Emirates can count on the indulgence of their shareholders, too.The hybrid carriers that remain, however, will find the going tough. Neither lean enough to survive on their own, nor politically connected enough to count on unlimited support, they may find the implicit backing of their governments less forthcoming than they’d hoped.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Norwegian Air <NWC.OL> on Monday reported that four Swedish and Danish subsidiaries had filed for bankruptcy and that it had ended staffing contracts in Europe and the United States, putting some 4,700 jobs at risk. The airline is seeking to convert debt to equity, money from shareholders and Norwegian state guarantees in a bid to survive the coronavirus crisis. Earlier on Monday Virgin Atlantic said it would only survive the pandemic if it got financial support from the British government, while Virgin Australia <VAH.AX> is set to enter voluntary administration, according to sources close to the matter.
Norwegian Air <NWC.OL>, which is seeking creditor support for its rescue plan, has told bondholders it will overhaul its strategy in the wake of the coronavirus pandemic, according to an investor who took part in a briefing by the airline on Friday. Last week the airline presented a rescue plan that would convert up to $4.3 billion of debt into shares and raise some new equity - wiping out much of the remaining value of the company's current stock. On Friday, Chief Financial Officer Geir Karlsen presented some information about the plan to bondholders in a conference call that lasted less than half an hour.