Norwegian's bondholders are voting in favor of the proposal to extend the terms of billion-dollar loans to save the crisis-stricken low-cost airline, according to a press release.

At a meeting with Norwegian's lenders on Monday, the airline has had its proposals for changes regarding the maturities of the unsecured bonds approved, totaling 3.4 billion Norwegian kroner. 

”"We are pleased with the bondholders' decision to extend the loans, which will give us greater financial space going forward. We believe it demonstrates confidence in our strategy and support for the important steps that Norwegian has taken to return to profitability," says Norwegian's acting CEO Geir Karlsen, according to the press release.

The change means an upward adjustment of the premium to 5 percent if Norwegian chooses to redeem the loan early. Norwegian has previously stated that the company has received indications that the lenders would accept the sweetened offer.

Norwegian also proposed extending the maturities by two years. The first tranche of the loan, equivalent to EUR 250 million, would have matured on December 11 this year, while the second tranche of EUR 964 million would have matured in August 2020.

Geir Karlsen also states in connection with Monday's news that the company's "operational performance continues to improve.".

”"Norwegian is on track to achieve a cost reduction target of SEK 2 billion in 2019," he writes.

Source: di.se