Arendal, Norway – 19 August 2025 – In a significant financial development for the aviation industry, Norse Atlantic ASA, the long-haul low-cost airline headquartered in Arendal, has announced the launch of a USD 30 million senior unsecured convertible bond issue. The offering comes at a time when international aviation is navigating a delicate balance of recovery, cost management, and expanding demand for affordable long-haul travel.
The convertible bond, a hybrid between debt and equity, is designed to give investors the security of a fixed-income instrument while also allowing them the option to convert their bonds into shares at a later date. According to company officials, the proceeds will primarily be used for debt refinancing and general corporate purposes, creating a stronger balance sheet and ensuring Norse Atlantic remains competitive in the rapidly evolving aviation and tourism markets.
Backing from Key Financial Partners
The bond issue is supported by respected financial institutions including Arctic Securities, Pareto Securities, and SpareBank 1 Markets, who are acting as joint bookrunners. Additionally, a consortium of heavyweight investors—Songa Capital AS, B T Larsen & Co, and funds managed by Borea Asset Management—have fully guaranteed the offering.
This robust backing underscores confidence in Norse Atlantic’s long-term viability. By securing guarantees even amid global market uncertainty, the airline is showcasing resilience and determination to maintain its trajectory in both aviation and tourism sectors.
Why This Matters for Aviation and Tourism
The timing of this bond launch is strategic. According to data from the International Air Transport Association (IATA), global passenger demand in 2025 has returned to nearly 105% of pre-pandemic levels, with long-haul leisure travel leading the surge. Norway, a nation heavily reliant on both inbound and outbound tourism, stands to gain from airlines like Norse Atlantic ensuring financial stability.
Norse Atlantic’s low-cost long-haul model, connecting Europe to North America and beyond, is crucial for tourism stakeholders—from Norwegian fjord tour operators to Canadian hospitality providers. By securing new financing, the airline is not only supporting investor interests but also indirectly boosting tourism flows between Norway and global destinations.
Extraordinary General Meeting: The Deciding Factor
While the bond announcement marks a strong first step, the deal’s execution is contingent upon shareholder approval. Norse Atlantic ASA has scheduled an Extraordinary General Meeting (EGM) on 9 September 2025 to seek authorization for the issuance.
Notably, the company has already secured irrevocable support from its two largest shareholders, Songa Capital AS and B T Larsen & Co. Their commitment to vote in favor of the resolution suggests a smooth passage at the EGM.
Convertible Bonds: A Strategic Financing Tool
Convertible bonds provide flexibility for airlines operating in volatile markets. Unlike traditional debt, these instruments allow bondholders to convert their holdings into company shares, aligning investor interests with future stock performance.
For Norse Atlantic, this means restructuring debt without immediate shareholder dilution while offering potential equity participation for bondholders. In essence, it balances short-term stability with long-term growth opportunities—an attractive proposition in a capital-intensive industry like aviation.
Industry Experts Weigh In
Analysts from the Norwegian Civil Aviation Authority (Luftfartstilsynet) and regional market watchers have noted that this move demonstrates foresight. With rising fuel costs, inflationary pressures, and competitive fares from rivals, financial agility is critical.
“Airlines today must ensure liquidity to weather shocks while also investing in passenger experience and route expansion,” one aviation finance expert remarked. “Norse Atlantic’s bond issue gives it breathing space and positions it well for capturing the rebound in leisure travel.”
Implications for Norway’s Economy and Tourism
Norway’s Ministry of Trade, Industry and Fisheries has repeatedly emphasized the role of airlines in supporting the country’s tourism economy, valued at nearly NOK 120 billion annually. With Norse Atlantic connecting Norway to transatlantic markets at affordable rates, its financial health directly impacts inbound visitor numbers, hotel occupancy, and local tourism revenue.
For example, increased passenger traffic from North America not only benefits Oslo and Bergen but also rural destinations such as the Lofoten Islands and Geirangerfjord, both UNESCO-listed tourism gems. By shoring up its capital, Norse Atlantic ensures that such global connectivity remains uninterrupted.
Looking Ahead: Future Growth and Market Stability
Beyond refinancing, this bond issue signals that Norse Atlantic is preparing for measured growth. Industry insiders speculate that the airline may expand its transatlantic network further, possibly introducing new connections between Oslo, Arendal, and key U.S. cities such as Boston or San Francisco.
The company’s strategy reflects a broader trend: airlines focusing on financial discipline first, expansion second, ensuring that long-term commitments to passengers, tourism partners, and employees are sustainable.
Conclusion: A Stronger Future for Norse Atlantic
Norse Atlantic ASA’s USD 30 million convertible bond launch is more than just a financial transaction—it is a clear statement of intent. With strong investor backing, shareholder alignment, and a transparent refinancing roadmap, the airline is setting the stage for stability in an industry known for turbulence.
For travelers, tourism operators, and Norway’s economy, this financial move ensures that the country remains firmly connected to global destinations. As shareholders prepare for the decisive EGM on 9 September 2025, the aviation world will be watching closely.
✅ Norse Atlantic ASA’s move reflects how aviation finance directly shapes tourism growth. By bridging capital markets with global travel demand, the airline is carving out a resilient future for Norwegian aviation.
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