Originally Posted by
itsallgood
WOW air's recent bond sale was the minimum amount they wanted to get … I don't know off the top of my head how far off their target it was, but the interest rate was prime plus 9%, maturing in 3 years. they're also trying to do an IPO - I don't see that happening.
From what I read their minimum was $50m, target was $100m and they got $54m. Of course the sale was done in another currency (not even Euros IIRC) so the exchange rates may have fluctuated.
They’re in trouble and they know it. The bond sale gives them an 18 month lifeline assuming all things remain the same, less if fuel increases or fares get depressed further. It’s them or Norwegian next to go under with a slim possibility that Icelandair could also be taken down. My money would be on Norwegian.