NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INAUSTRALIA ,CANADA , THEHONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE'S REPUBLIC OF CHINA,SOUTH AFRICA ,NEW ZEALAND ,JAPAN ORTHE UNITED STATES , OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF ANY OF THE SECURITIES DESCRIBED HEREIN. The Board of Directors ofNorwegian Air Shuttle ASA ("Norwegian" or the "Company") is today announcing an indicative plan (the "Plan") and set of actions that creates a framework that will potentially enable the Company to exit its Irish Examinership and Norwegian Reconstruction processes during the first quarter of 2021. Core to the Plan is that Norwegian will henceforth focus on its core Nordics business, operating a European short haul network with narrow body aircraft. Under these circumstances a long haul operation is not viable for Norwegian and these operations will therefore not continue. The Company targets to reduce its total debt to aroundNOK 20 billion Norwegian also plans to raiseNOK 4 - 5 billion in new capital through a combination of (i) a rights issue to current shareholders, (ii) a private placement and (iii) a hybrid instrument. The Company has already received written interest in participation in a private placement. The Company has recently reinitiated a dialogue with the Norwegian Government about possible state participation based on the current business plan. Should the Plan be successful and accepted by the Examinership and Reconstruction Negotiation processes, Norwegian is expected to initially hold up to 50 Boeing 737 aircraft (owned and leased) primarily operating inNorway and the Nordics or fromNorway / Nordics to Continental Europe. It is estimated the Company will emerge having a total debt of aroundNOK 20 billion and free cash position of approximatelyNOK 4 to 5 billion following the reconstruction. Based on conservative assumptions both in relations to the length of the Covid-19 pandemic and relating to revenues, costs and load factors the Company expects positive EBITDA post reconstruction in 2021. According to the presented Plan, current shareholders will hold approximately 5% of the shares in the Company post-reconstruction. In addition, shareholders are offered to participate in a rights offering of up toNOK 400 million . Norwegian´s impaired creditors are estimated to hold approximately 25% of the shares in the Company post reconstruction, as compensation for their participation in the debt reduction, while new investors (in both the equity issue and the new hybrid instrument) will hold, directly or indirectly, approximately 70% of the shares in the Company. For further details, please see the enclosed INDICATIVE TERM SHEET FOR RIGHTS OFFERING AND RESTRUCTURING OF DEBT. For more information, please contact:Geir Karlsen , CFO, phone +47 916 08 332 Press contact:Esben Tuman ,SVP External Communications , phone +47 905 08 400 Fornebu,14 January 2021 Norwegian Air Shuttle ASA Important information The release is not for publication or distribution, in whole or in part directly or indirectly, in or intoAustralia ,Canada , the Hong Kong Special Administrative Region Of The People's Republic Of China,South Africa ,New Zealand ,Japan orthe United States (including its territories and possessions, any state ofthe United States and theDistrict of Columbia ). This release is an announcement issued pursuant to legal information obligations, and is subject of the disclosure requirements pursuant to section 5-12 of theNorwegian Securities Trading Act. It is issued for information purposes only, and does not constitute or form part of any offer or solicitation to purchase or subscribe for securities, inthe United States or in any other jurisdiction. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "US Securities Act"). The securities may not be offered or sold inthe United States except pursuant to an exemption from the registration requirements of the US Securities Act. This announcement is an advertisement and is not a prospectus for the purposes of Regulation (EU) 2017/1129 of theEuropean Parliament and of the Council of14 June 2017 on prospectuses to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (as amended) as implemented in any Member State. Forward-looking statements: This release and any materials distributed in connection with this release may contain certain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they reflect the Company's current expectations and assumptions as to future events and circumstances that may not prove accurate. A number of material factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
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