Norse Atlantic’s founding shareholder injects $15m in new funding

Norse Atlantic Airways has obtained around $15m in new capital through a combined equity and loan transaction by its founding shareholder. It disclosed the support as it posted a third-quarter operating profit of $4.6m, but a net loss of $6.3m – a contrast to last year’s narrow net profit of $1.6m for the period. The shareholder, BT Larsen & Co, is a vehicle linked to founder and CE Bjorn Tore Larsen. Norse says the investment involved private placement of new shares raising around $8.7m, plus a shareholder loan of about $6.3m. The carrier states that the capital will be used for “general corporate purposes”. Chairman Terje Bonin Larsen says the investment “demonstrates the commitment and belief” of the shareholder in the company’s strategy. Norse has shifted towards leasing part of its fleet capacity in order to offset seasonal variations in demand for its passenger flights. It has reached a preliminary agreement to wet-lease six of its aircraft to an international carrier next year. The newly-issued private-placement stock will account for some 13% of the company’s outstanding shares, and give BT Larsen & Co around 29.46% of the total capital.<br/>