SAS completes recapitalization plan

Scandinavian Airlines (SAS) announced the successful completion of its recapitalization plan, a significant financial restructuring aimed at strengthening the company's balance sheet. The plan converted approximately SEK 2.25 billion in debt into equity and raised total proceeds of approximately SEK 12 billion before transaction costs.

As a result of the recapitalization, SAS' equity is restored by an amount corresponding to SEK 14.25 billion. The total number of shares and votes in SAS has increased by approximately 6.88 billion, leading to a dilution of about 95% for existing shareholders.

The recapitalization involved multiple components. Holders of SAS' senior unsecured bonds were offered the option to convert their bonds into new shares, with remaining debt converted into new hybrid notes. Existing hybrid noteholders had their securities converted into common shares. Additionally, a directed share issue took place, and a rights issue was completed.

The governments of Sweden and Denmark, SAS' major shareholders, participated significantly in the plan. Both governments now hold approximately 21.80% of the total shares and votes in the company following the issuance of new shares to them.

SAS stated that this recapitalization is a crucial step in its strategy to ensure its long-term competitiveness and financial stability in the evolving aviation industry.