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Bloomberg
While Europe’s second-tier airlines collapse or wrestle with stretched finances, Wow Air plans to sell shares to the public.
The Iceland-based low-cost carrier hired Arion Bank and Arctica
Finance to prepare for an initial public offering in 12 to 18 months, it said, when it also published details about a bond issue.
The 60 million euros ($70 million) bond, maturing in three years, will pay a 9 percent coupon.
That’s the highest interest of any bond by a European airline denominated in euros or US dollars that’s still actively trading, data compiled by Bloomberg show.
Wow Air needs funds to pursue an aggressive growth plan — a strategy that has caused the demise of other airlines on the continent.
While Norwegian Air Shuttle has fended off takeover approaches by IAG SA and is trying to fix its balance sheet, Italy’s former flag carrier Alitalia remains insolvent.