Norwegian in 2019

Join this forum to discuss the latest news that happened in the world of commercial aviation.

Moderator: Latest news team

Poiu
Posts: 611
Joined: 14 Nov 2015, 09:38

Re: Norwegian in 2019

Post by Poiu » 02 Sep 2019, 10:46

Poiu wrote:
12 Jul 2019, 10:37
TLspotting wrote:
12 Jul 2019, 08:33
Norwegian’s financial turnaround moves in the right direction: Increased revenue and reduced cost :

https://www.aviation24.be/airlines/norw ... uced-cost/
The actual report paints a completely different picture though:
-Q2 profits down 72% compared to last year.
-Debt more than doubled, Norwegian is burning cash at an increasing rate.
-H1 Negative profit margin (-7% compared to + 1,5% last year). Q2 profit margin decimated from 2,9 to 0,7%.
-equity per share almost halved during the first six months of 2019.
https://resources.mynewsdesk.com/image/ ... o4tkdq.pdf
Norwegian are unable to pay back the bonds maturing at the end of this year!
https://newsweb.oslobors.no/message/484314

Passenger
Posts: 6276
Joined: 06 Dec 2010, 20:54

Re: Norwegian in 2019

Post by Passenger » 02 Sep 2019, 11:09

Poiu wrote:
02 Sep 2019, 10:46
Norwegian are unable to pay back the bonds maturing at the end of this year!
https://newsweb.oslobors.no/message/484314
"Unable to pay back" is a wrong summary.

User avatar
luchtzak
Posts: 11316
Joined: 18 Sep 2002, 00:00
Location: Hofstade, Zemst - Belgium
Contact:

Re: Norwegian in 2019

Post by luchtzak » 02 Sep 2019, 11:13

Passenger wrote:
02 Sep 2019, 11:09
Poiu wrote:
02 Sep 2019, 10:46
Norwegian are unable to pay back the bonds maturing at the end of this year!
https://newsweb.oslobors.no/message/484314
"Unable to pay back" is a wrong summary.
Norwegian Air Shuttle offers bondholders security in exchange for amended bond maturities

Norwegian Air Shuttle (“NAS” or the “Company”) is executing on its strategic plan from growth to profitability and cash generation. To ensure successful operations and adequate liquidity headroom, NAS is requesting to extend the maturity dates of its two unsecured bonds in exchange of a security package backed by the attractive take-off and landing slots at London Gatwick Airport.

The Company is requesting an extension for NAS07 and NAS08 to November 2021 and February 2022, respectively. The Company will in exchange offer the unsecured bondholders a security package consisting of a pledge over all shares in Norwegian Air Norway AS (“NAN“), which will hold the attractive take-off and landing slots at London Gatwick Airport.

Norwegian’s Gatwick portfolio currently consists of take-off and landing slots which has an independent valuation from a well-reputed third-party in excess of the current nominal bond value for NAS07 and NAS08 of USD 380 million. These are important operational rights for the Norwegian Group, facilitating the feeding of passengers between our European short-haul network and intercontinental long-haul network, an important part of Norwegian’s profitability strategy going forward. Previous transactions in the market demonstrate the ability to monetize on slots at Gatwick.

Improved operational performance
The Company’s operational performance continues to improve since the Q2 2019 Report mid-July. The Company is on track to reach NOK 6-7 billion in EBITDAR in 2019 as stated in the Q2 2019 Report, with further improvement expected next year. This would be at all-time high levels, despite the well-known issues with Rolls-Royce engines on the Company’s Dreamliners and the grounding of the Boeing 737 MAX fleet.

As reported, NAS continues to prioritize delivering on the announced initiatives:

• Norwegian is on track to reach the targeted NOK 2,000 million cost reduction for 2019. Further cost improvements are expected in 2020 and 2021
• NAS is working to shorten the working capital cycle through new payment technologies and further capacity
• The shareholding in Norwegian Finans Holding ASA (“NOFI”) has been sold with a price of NOK 2,218 million, with the net proceeds of NOK 934 million to be received ultimo Q4 2019
• The negotiations regarding the establishment of the joint venture for a part of the aircraft fleet are progressing and will be announced when concluded
• In 2019, Norwegian has sold aircraft with proceeds net of debt repayment of USD 127 million. Further divestment is put on hold until the Boeing 737 MAX is back in operation.

Despite significant operational progress, the working capital has been negatively affected by the Rolls-Royce engines issues and the grounding of the MAX fleet by approximately NOK 1.5 billion. In addition, terms in the credit card acquirer market have tightened. In Q2, Norwegian’s customers had bought, not travelled, tickets for NOK 9 billion. Compared to Q2 2018, the amount not received from credit card acquirers has negatively affected working capital by approximately NOK 4 billion.

Norwegian’s 60/40 summer/winter seasonality effect requires a build-up of liquidity reserves before the winter season. The proceeds from the sale of the NOFI shareholding will strengthen the balance sheet and liquidity. NAS has ongoing discussions with lessors with the goal to defer payment schedules. Well publicised discussions with aircraft and engine manufacturers are ongoing, all with the goal of significant liquidity ease.

Bondholders’ meetings to be summoned
NAS has requested Nordic Trustee AS as Bond Trustee to summon bondholders' meetings in the context of a request to amend certain terms and conditions of the outstanding bonds NAS07 (ISIN NO0010753437) and NAS08 (ISIN NO0010783459) maturing 11 December 2019 and 7 August 2020 respectively.

In addition to receiving asset backing, NAS proposes to amend the call structures to include step-ups of the call premiums, including redemption at maturity at 105% of par. The bondholders will be further compensated through an early bird fee and an amendment fee.

Timeline:
• 2 September: Summons to bondholders’ meetings
• 11 September: Early bird fee deadline
• 16 September: Bondholders’ meetings

Please see attached the summons to the bondholders’ meetings on 16 September 2019.

DNB Markets, a part of DNB Bank ASA, and Pareto Securities AS have been retained as financial advisers for NAS and BAHR and Wikborg Rein are acting as legal advisers.

For more information, please contact: Tore Østby, EVP Strategic Development and IR, phone: +47 995 46 400

Poiu
Posts: 611
Joined: 14 Nov 2015, 09:38

Re: Norwegian in 2019

Post by Poiu » 02 Sep 2019, 11:49

Passenger wrote:
02 Sep 2019, 11:09
"Unable to pay back" is a wrong summary.
If you say so...

Not paying back a bond is not something you would do if there are other options as it will affect your credit rating in a very bad way. Norwegian’s credit rating is already that bad that credit card companies are holding back payments. To bypass this Norwegian now sells tickets for bitcoin....

https://www.thetimes.co.uk/article/cred ... -6jbqn5n02
https://www.forbes.com/sites/martinrive ... o-bitcoin/

User avatar
sn26567
Posts: 35471
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Norwegian in 2019

Post by sn26567 » 04 Sep 2019, 21:52

Norwegian shares fell over 10% at the most after it became known that Jan Petter Sissener and his team are considering voting no to the loan package Norwegian has proposed. The shares have since recovered.
André
ex Sabena #26567

User avatar
sn26567
Posts: 35471
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Norwegian in 2019

Post by sn26567 » 08 Oct 2019, 21:00

Norwegian has cut five of its A320neos on order, as part of its 2012 order for 100 A320neo family aircraft.
André
ex Sabena #26567

User avatar
sn26567
Posts: 35471
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Norwegian in 2019

Post by sn26567 » 10 Oct 2019, 23:23

AerCap took ownership of five A320neos relinquished by Norwegian, as part of a deal to finance deposits on the planes. The airline may end of leasing the aircraft back.
André
ex Sabena #26567

Post Reply