Norse Atlantic Raises Funds to Launch UK Subsidiary
An oversubscribed private share placement has allowed the Norwegian low-cost carrier to generate enough funds to help launch its UK subsidiary.
An oversubscribed private share placement has allowed the Norwegian low-cost carrier to generate enough funds to help launch its UK subsidiary.
DALLAS - Norwegian low-cost, long-haul carrier Norse Atlantic Airways (N0) has successfully raised NK300 million (US$30 million) via an underwritten private share placement to help launch its UK subsidiary. The airline now hopes to move forward with plans to commence services using its fleet of Boeing 787-9s next year.
The funds generated will be used to maintain a “targeted cash buffer,” a requirement from UK aviation authorities to invest US$46 million to be used exclusively by Norse Atlantic Airways UK.
Completion of the offer is now subject to several formalities, such as board approval. The airline added that the offering also depends on the trading price of the 120,000,000 shares made available remaining above the offer price.
Norse Atlantic CEO Bjorn Tore Larsen said the placement was directed at specific Norwegian and international investors and was subsequently one-and-a-half times oversubscribed. The carrier said this indicated a “strong confidence” in their business model.
“This successful equity raise will allow Norse Atlantic to build on its already strong financial base. We were already in a much stronger position strategically and financially than many other airlines and we now look forward to growing from strength to strength,” Mr Larson explained.
Before the private placement, Mr Larson held a 12.8% shareholding in Norse Atlantic. No announcement has been made about whether this has changed or about the new shareholder structure.
N0 was established in early 2021 to fill the gap when Norwegian Air Shuttle (DY) decided to step away from long-haul services. It commenced operations in June 2022 between Oslo (OSL) and New York (JFK).
The carrier announced a UK subsidiary in May 2021. Applications were made to the Civil Aviation Authority (CAA) for an air operator’s certificate (AOC) and operating license and to the United States Department of Transportation (USDOT) for its foreign air carrier permit, with the hope of launching flights in summer 2022.
It intends to link its London Gatwick (LGW) base initially with Fort Lauderdale (FLL), New York (JFK), New York (SWF) and Orlando. Other services to Baltimore (BWI), Chicago (RFD), Ontario (ONT) and San Francisco (SFO) will follow.
Featured Image: Norse Atlantic Airways Boeing 787-9 (LN-FNS). Photo: Yifei Yu/Airways.
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