|Bid||3.5420 x N/A|
|Ask||3.5500 x N/A|
|Day's range||2.9600 - 3.6000|
|52-week range||1.5000 - 48.1700|
|Beta (5Y monthly)||1.51|
|PE ratio (TTM)||N/A|
|Earnings date||28 May 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||224.45|
Lessors including AerCap and BOC Aviation are now the biggest shareholders in Norwegian Air 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 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 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 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.
(Bloomberg) -- Norwegian Air Shuttle ASA shareholders approved a restructuring plan that hands almost all of the company’s equity to its creditors, after the coronavirus crisis pushed the struggling airline to the brink of survival.The plan converts almost $1 billion of debt into stock, qualifying the low-cost carrier for state loan guarantees that, along with the sale of new shares, will keep it afloat for at least several months.The vote capped a dramatic race against the clock over for Norwegian Air, which clinched a last-minute deal with creditors in talks that went through the weekend. Yet the airline’s near-term prospects remain uncertain with a market in shambles because of the Covid-19 pandemic, and it could need to seek new funds as soon as this year.The process has been “one of the most suspenseful finance thrillers ever” in Norway, Chief Executive Officer Jacob Schram said in a webcast Monday after an extraordinary general meeting. While the result is “an incredible relief,” the company now has “a lot of hard work ahead.”Shareholders, who were facing a choice between heavy dilution and a complete wipe-out, approved the plan by an overwhelming majority. Leasing companies and bondholders will convert more than 10 billion kroner ($959 million) of debt into equity, while the company plans to raise as much as 400 million kroner in new equity.Stock SurgesThe stock rose as much as 49% and was up 18% as of 1:28 p.m. in Oslo. While current shareholders will retain only 5.2% of the company, half of the new capital raised will be reserved for them. The issue will be completed at a discounted price that will be set later on Monday, Chief Financial Officer Geir Karlsen said at the press conference.Shares have skidded 84% this year, giving Norwegian a market value of $110 million, about equal to the price of one of the red-and-white painted narrow-bodies it sails around Europe.The deal boosts the carrier’s equity ratio, allowing it to meet strict requirements set by Norway to access the remaining 90% of 3 billion kroner in state loan guarantees. Without state help, the company would have run out of cash by the middle of this month.Like the rest of the airline industry, Norway’s low-cost carrier has suffered a body blow from the Covid-19 crisis, which came just as the company was implementing a strategy to cut costs and reduce capacity after years of debt-fueled growth. Norwegian Air’s upcoming equity issue will be its fourth in about two years.Read more:Lufthansa Wrestles With Germany Over State Bailout TermsAn $85 Billion Airline Rescue May Only Prolong the PainAir France-KLM Wins EU Approval for $7.7 Billion BailoutNorwegian has grounded almost its entire fleet and drawn up a plan for a new, leaner company with fewer aircraft. It expects to burn through as much as 500 million kroner every month starting in July 2020, it said in a presentation last week.Further NeedsPainting a bleak outlook for the industry, Norwegian said it only expects a gradual recovery in activity from the second quarter of next year, and normal operations to resume no earlier than 2022. Further funding efforts will likely be needed as soon as this year, it said in the same presentation. On Monday, CFO Karlsen said it had “flexibility liquidity-wise” until next Easter, or April 2021.Shareholders approved each of the key proposals on the equity raise and the conversion of bond debt and lessor claims with more than 95% of the vote, Norwegian said.After some of the holders of one of its bonds initially rejected the deal, the company will need to hold further bondholder meetings on May 18, but that’s now considered “a formality,” Karlsen said.(Updates with CEO, CFO comments from press conference from fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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 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's 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. The company has not confirmed the outcome of the vote, which is held online and with access for shareholders only.
Norwegian Air 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 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 , 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.