Norwegian taps investors for extra cash for second time this year

Norwegian Air Shuttle is tapping investors for extra cash for the second time this year as the low-cost airline seeks to secure its financial future ahead of the tricky winter season.  Europe’s third-largest low-cost airline is issuing up to 27.25m new shares — about a fifth of its existing share capital — in a private placement as well as a convertible bond of up to $175m.  Norwegian is likely to sell the shares at a discount to its current share price — at Tuesday’s closing level the new shares would be worth about NKr1.25b ($135m). In its previous NKr3b private placement last spring it sold them at less than half of its previous price. It added that it intended to offer an unspecified number of shares to existing shareholders on the same terms as the private placement afterwards. The airline has taken considerable action this year after ending its strategy of rapid expansion, including into transatlantic flights, and instead focusing on profitability. It has sold aircraft and its stake in the Norwegian bank it founded, restructured bonds, and replaced its CE and chairman.  Geir Karlsen, the acting CE, said that despite “good results to date” its liquidity had been negatively affected by problems with its Boeing 787 Dreamliner and 737 Max aircraft as well as issues with credit card companies.  “The actions we are now taking are necessary to create financial headroom to make sure that we have sufficient liquidity as we enter the next chapter of Norwegian,” he said. Norwegian added that it would be fully funded “through 2020” after the private placement and convertible bond. <br/>