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Norwegian Air proposes to increase unsecured bonds call price

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By Reuters
Norwegian Air proposes to increase unsecured bonds call price
FILE PHOTO: Norwegian Air headquarters in Fornebu, Norway, June 1, 2017. REUTERS/Ints Kalnins   -   Copyright  INTS KALNINS(Reuters)

OSLO (Reuters) – Budget airline Norwegian Air <NWC.OL> has proposed amending terms of its two unsecured bonds in relation to its request for extending maturities, the company said on Tuesday.

The company asked bondholders on Sept. 2 for up to two more years to pay back $380 million of outstanding debt, in the loss-making airline’s latest attempt to shore up its finances.

Norwegian Air said on Tuesday it would propose to change the premium payable in connection with voluntary repayment, or call, for NAS07 and NAS08 bonds.

The company said it would increase the call price to 105% throughout the remainder of the tenor, keeping the redemption price at 105% at maturity.

The company’s bonds, which mature in December 2019 and August 2020, will be extended to November 2021 and February 2022 if bondholders accept the revised terms.

A bondholders’ meeting will take place on Sept. 16.

(Reporting by Nerijus Adomaitis, editing by Ed Osmond)