Norse Atlantic ASA Strengthens Financial Position with $110 Million Rights Issue

Recently, Norse Atlantic ASA has successfully completed a significant capital-raising initiative with its fully underwritten rights issue aimed at fortifying its financial stability. The offering included a total allocation of 2,039,664,000 new shares, issued at a subscription price of NOK 0.50 per share. This rights issue is projected to generate gross proceeds of approximately NOK 1,019,832,000, equivalent to around USD 110 million. It is a critical step taken by the airline to enhance liquidity and support sustained operations.

The rights issue period concluded on 19 June 2026 at 16:30 CEST, witnessing robust participation from shareholders. Approximately 78.8% of the subscription rights were exercised directly by existing shareholders and eligible participants, with overall participation reaching 86.2%. This indicates a significant level of confidence among investors and the market, reflecting strong institutional backing for the airline’s future prospects.

Complete allocation of the 2,039,664,000 shares has been executed in accordance with the allocation principles established in the prospectus dated 4 June 2026. Specifically, 1,606,732,969 shares were distributed to those who exercised their subscription rights, while 432,931,031 shares were allocated through underwriting commitments and pre-subscription arrangements, demonstrating a balanced involvement from both existing shareholders and institutional investors.

The net proceeds from this rights issue are primarily designated for repaying the Bridge Loan Facility, which is essential for maintaining the airline’s operational stability. However, this repayment may be partially offset by participation from bridge lenders who also subscribed to the offering, effectively netting their subscription obligations against their loan exposure. Remaining funds will be utilized for general corporate purposes, essential operational funding, liquidity management, and working capital needs—key factors for maintaining robust operations in the airline industry.

Investors can expect notifications confirming their allocated shares and payment obligations around 22 June 2026. Allocated holdings will be viewable in VPS accounts starting at 12:00 CEST on the same date. It is crucial for investors to note that payment for allocated shares is due by 23 June 2026, adhering to the settlement procedures outlined in the prospectus. Until full payment is made and registered with the Norwegian Register of Business Enterprises, the shares remain non-transferable and ineligible for trading, with registration anticipated to conclude around 29 June 2026.

In addition to the rights issue, Norse Atlantic ASA has announced a successful bond conversion offer, allowing bondholders to convert holdings from senior unsecured convertible bonds into new equity at the same subscription price of NOK 0.50 per share. The acceptance period closed on 17 June 2026, with around 96% of outstanding bonds accepting the conversion, leading to the issuance of 545,932,674 new shares—an impressive acceptance rate that underlines the strong alignment of creditor interests with the company’s strategic direction.

The anticipated issuance of bond conversion shares will coincide with the overall capital increase scheduled around 30 June 2026, with shares expected to be delivered to VPS accounts on the same day. Further trading on Euronext Expand Oslo is also anticipated to commence shortly thereafter.

Moreover, following authorizations from the Extraordinary General Meeting, additional equity issuances will be made. This includes shares issued for underwriting commissions and a possible allocation of shares to the firm’s Chief Executive Officer, Eivind Roald, reinforcing the company’s commitment to incentivizing management while ensuring proper alignment with shareholder interests.

With the completion of these transactions, Norse Atlantic ASA anticipates a significant increase in its registered share capital, potentially reaching a total of 2,958,145,721 shares, each valued at NOK 0.50. This expansion in share capital illustrates a strategic pivot towards a more robust capital structure, providing the airline with increased operational flexibility to navigate the demands of the competitive airline market effectively.

In light of these developments, the airline’s advisors—Arctic Securities AS, Pareto Securities AS, and SB1 Markets AS—are overseeing this monumental rights issue and bond conversion initiative, with legal guidance from Wikborg Rein Advokatfirma AS.

This comprehensive approach not only significantly enhances the airline’s equity base but also substantially reduces its financial leverage, ensuring a more stable foundation for operational activities and future growth. With strong investor support and clear strategies in place, Norse Atlantic ASA is well-positioned for resilience and long-term success in the airline industry.

Source: The post Norse Atlantic ASA Completes Landmark Fully Underwritten Rights Issue Worth Approximately USD 110 Million as Massive 2.03 Billion Share Allocation Strengthens Liquidity, Reinforces Balance Sheet Stability and Signals Strong Institutional and Shareholder Confidence first appeared on www.travelandtourworld.com.