Norwegian (DY, Oslo Gardermoen) updated the market on its forthcoming capital raise on April 14 with the news that it now aims to raise up to NOK6 billion kroner (USD716 million) in fresh capital, an increase from a previously planned NOK4.5 billion (USD537 million).

This is due to several factors, chief executive Jacob Schram said in a statement.

“We want to take a conservative approach at a time when the pandemic and travel restrictions continue to create unpredictability in the travel sector. We must take this uncertainty into account in our forward planning strategy. At the same time, we have also taken into consideration feedback from investors, as well as dialogue with our board,” he explained.

The company said in a separate exchange filing that “certain cornerstone investors who have provided long-term support” for its ongoing restructuring have agreed to inject NOK2.855 billion (USD341 million) through a share issue.

In addition, current creditors have expressed an interest to participate in the capital raise and are expected to buy new perpetual bonds worth at least NOK1.8 billion (USD215 million). Norway’s government has already said it is willing to invest NOK1.5 billion (USD179 million) in hybrid capital.

The company expects the projected capital raise to start on or about May 10 with a target closing date of around May 26, which is the date it aims to exit the restructuring process.

“The debt will be reduced by between NOK62 billion and NOK65 billion [USD7.4-7.8 billion] compared to the end of 2019, and we have cancelled aircraft orders worth NOK85 billion [USD10.14 billion]. Total debt will therefore be between NOK16 billion and NOK20 billion [USD1.9-2.4 billion], of which NOK6-7 billion [USD716-835 million] is related to our aircraft fleet,” Geir Karlsen, Norwegian’s chief financial officer, outlined.

As previously reported, courts in Oslo and Dublin recently gave their approval for Norwegian to slash its debt by converting it to stock, but the rulings were conditional on the airline raising at least NOK4.5 billion (USD537 million) in additional funds.