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Norwegian Air Shuttle (No_rec, TP: NOK) - Calls bondholder meeting to extend maturities Norwegian Air Shuttle said this morning it had called a bondholder meeting to ask for extended maturities for its NAS07 and NAS08 bonds. In compensation, it proposes

Norwegian Air Shuttle (NAS NO, No_rec) - Calls bondholder meeting to extend maturities Norwegian Air Shuttle said this morning it had called a bondholder meeting to ask for extended maturities for its NAS07 and NAS08 bonds. In compensation, it proposes that bondholders will be offered the Gatwick slots as security. According to the company, the extended maturity is needed to support liquidity as working capital remains hit by holdbacks from credit card processors and the Rolls Royce/MAX issues. We believe the proposed deal – if accepted by bondholders – would be a positive for Norwegian Air Shuttle as it would remove the key investor concern and give the company time to continue to deliver on its strategy. However, on the negative side, we view the likelihood of a near-term JV as lower. Due to our role as adviser, we now have NO REC (previously BUY) and no target price (previously NOK60) on the stock. Offers Gatwick slots as security for extension of bond maturities. Norwegian Air Shuttle said this morning it had called a bondholder meeting to ask for extended maturities for its NAS07 bond to November 2021 (previously 11 December 2019) and its NAS08 bond to February 2022 (previously 7 August 2020). The meeting is scheduled for 16 September. In compensation for the potential extended maturities, it proposes that bondholders are offered a security package with a pledge over shares in Norwegian Air Norway AS (NAN), which will control and operate the landing slots at London Gatwick. Bondholders will also be offered an early bird fee of 0.25%, amendment fee of 0.75%, and 105% redemption at maturity with a call structure to incentivise early payment. (11 pages)