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Jan 29 2019, 08:40 GMT
Norwegian Air
Announces fully underwritten rights issue of NOK3bn
- Sectors : Airlines
- Companies : Norwegian Air
DAVY VIEW
In our view, Norwegian’s equity balance was likely to sink below its covenant level in Q1 and, as such, a resolution of some form was necessary. As IAG stepped away from a bid and an aircraft joint venture had not yet come to fruition, there were increasing expectations of a rights issue (similar to Q1 2018). This issuance gives Norwegian flexibility, while it looks to deliver much needed improvement of its operational and commercial performance.
