Norwegian Air Shuttle increases price offered for floating-rate notes

By Angela McDaniels

Tacoma, Wash., June 18 – Norwegian Air Shuttle ASA increased the tender offer price for its floating-rate senior bonds due 2015 to 103% of par from 102.5% of par, according to a notice from bond trustee Nordic Trustee ASA.

Holders will also receive accrued interest.

As previously reported, the company is offering to buy back the bonds and is seeking consents to amend some of their covenants ahead of a potential debt offering.

On June 13, the company said it has mandated financial advisers to arrange a series of Nordic fixed-income investor meetings in order to consider a Norwegian krone-denominated debt capital markets transaction.

As a preparatory measure, the company is seeking bondholder approval to

• Delete the clause concerning book equity to capital employed;

• Add a minimum book equity that requires the consolidated group to maintain a book equity of at least NOK 1.5 billion; and

• Amend the liquidity clause to require the consolidated group to maintain at least NOK 500 million of liquidity.

The tender offer is conditional on the success of the consent solicitation, although the company has the right to waive this condition, and the consent solicitation is conditional on the settlement of the tender offer.

The tender offer will end at 10 a.m. ET on June 26. The settlement date is expected to be July 3 but in no case later than July 12.

Bondholders will vote on the proposed changes at a meeting in Oslo at 7 a.m. ET on June 27.

At least half of the bonds must be represented at the meeting in order to form a quorum. The holders of a majority of the bonds represented at the meeting must vote in favor of the changes in order for them to be made.

Norwegian Air Shuttle is an airline based in Fornebu, Norway.

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