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* Airline raises NOK 6 bln in fresh capital, as planned
* Company set to emerge from restructuring process on May 26
* Private placement, rights issue oversubscribed
(Adds detail)
OSLO, May 21 (Reuters) - Norwegian Air is set to
exit its restructuring process next week after raising the 6
billion Norwegian crowns ($714 million) it targeted through the
sale of perpetual bonds, new shares and a rights issue, the
company said on Friday.
Financed largely by debt, Norwegian Air grew rapidly,
serving routes across Europe and flying to North and South
America, Southeast Asia and the Middle East before the COVID-19
pandemic plunged the budget airline into crisis.
Courts in Ireland and Norway had demanded the airline raise
at least 4.5 billion crowns as part of a scheme to emerge from
bankruptcy protection in the two countries on May 26.
The private placement of new shares raised 3.73 billion
crowns and was "significantly oversubscribed", the firm said in
a statement.
The perpetual bond sale added 1.88 billion crowns from
current creditors, while the rights issue to existing
shareholders was oversubscribed and the final results are to be
settled on May 25, the company said.
The courts in Oslo and Dublin last month gave their approval
for Norwegian to sharply cut its debt by converting it to stock
so long as it raised the 4.5 billion crowns.
With the pandemic still curbing travel, the company then
decided to try and raise an additional 1.5 billion crowns to
bolster resources as it exits the restructuring process it began
last December.
The survival plan brings an end to Norwegian's long-haul
business, leaving a slimmed-down carrier focusing on Nordic and
European routes.
But Europe's airline industry faces a second summer holiday
travel season hampered by travel restrictions and uncertainty.
Travel companies including EasyJet, TUI Cruises and
IAG have sold bonds to boost their balance sheets or
refinance debt.
Ryanair, Europe's largest low-cost airline, raised
1.2 billion euros in a five-year bond sale on Tuesday.
DNB, ABG Sundal Collier, and Seabury Securities LTD advised
Norwegian Air on the capital raise.
($1 = 8.4025 Norwegian crowns)
(Reporting by Victoria Klesty, editing by Louise Heavens,
Kirsten Donovan)
