Norwegian Air Shuttle ASA – Recapitalization process nearly complete – agreement securing additional debt conversion commitments from lessors

Norwegian Air Shuttle ASA (the “Company”) is pleased to announce that it has received strong support from lessors for a minimum conversion to equity of USD 730 million (excluding conversion under the so-called power-by-the-hour arrangement), up from the previously announced USD 550 million. The conversion is supported by a significant number of lessors and the Company continues to discuss with other of its lessors for possible further conversion of debt to equity.

The Company yesterday announced that major contributions from all bondholders have been agreed. With the significant contributions from lessors and bondholders, the Company expects to convert more than NOK 10 billion in debt to equity. With this, the Company expects to significantly outperform the 8% equity ratio requirement in the Government State Aid Package. In addition, the Company expects that the shareholders will approve a public offering of up to NOK 400 million in new equity (the “Public Offering”). The Company is also pleased to announce that it has received commitments from bondholders to subscribe a meaningful amount in the suggested Public Offering.

With the conversion of more than NOK 10 billion from debt to equity now, a successfully completion of the Public Offering and significant concessions on future lease costs in the range of USD 200 million that will additionally be converted into equity, the Company has laid a solid foundation for New Norwegian and a strong return to the skies once the COVID-19 situation improves.

The Company has already received approximately 60% support of the convertible bondholders in the Senior Unsecured Convertible Bonds 2019/2024 in respect of reconfirming their resolution on 1 May 2020. The Company’s consent solicitation is attached.

Norwegian has scheduled its extraordinary general meeting to approve the debt conversion and share issue on Monday 4 May at 8:30 CET.