Norse Atlantic shareholders provide loan as carrier prepares for summer cash stream

Long-haul budget carrier Norse Atlantic Airways has obtained additional liquidity through a $20m shareholder loan. The loan has been granted by Scorpio Holdings and BT Larsen & Co, the two largest shareholders in the airline company. Scorpio has 21.2% of Norse while BT Larsen – which is controlled by CE Bjorn Tore Larsen – has nearly 18.9%. Norse says the loan provides a “liquidity buffer”, ahead of the cash-generating spring and summer seasons, and adds that it illustrates “continuing strong support” to the airline from its main stakeholders. The carrier’s cash position at the end of March was $32.6m. It says the loan facility – which is on “market terms” and unsecured – is available to mid-October, and it will be able to access the funds immediately if required. Drawn sums will have a 15% annual interest rate. Norse is expecting a “promising summer”, pointing out that business is improving, with revenues increasing “substantially” over the year so far and “significantly” higher charter income either booked or under discussion.<br/>