The Swedish and Danish states are moving with more of their equity stake in the SAS issue – E24

The results of an issuance to SAS are now ready, the airline announced in a stock announcement Wednesday afternoon.

SAS will raise a total of SEK 12 billion in fresh capital in a previously announced rescue package, part of which will be raised through this issuance, which is aimed at all shareholders.

This was almost entirely underwritten, but Sweden and Denmark had to pay the last 9.5 percent as guarantors. The second issue is aimed at the largest owners of the company. Also, the debt must be converted.

Recover four billion Swedish crowns

A total of 84.04 percent of the offered shares were subscribed by existing shareholders, all of whom received subscription rights, according to Wednesday’s stock exchange announcement.

6.44 percent was subscribed by other investors without subscription rights.

Thus, 90.5 percent of the issue is subscribed. The rest must be covered by Sweden and Denmark, which guarantees that the money will reach SAS.

SAS collects just under SEK 4 billion on this issue.

This is the SAS rescue plan

The plan, which was launched on June 30, is based primarily on:

• Four billion SEK in cost improvements by 2022.
• A private placement in which the largest shareholders buy new shares for SEK 2.006 billion at SEK 1.16 per share (Sweden, Denmark and the Wallenberg family).
• An issue of SEK 3.99 billion offered to existing shareholders of NOK 1.16 per share (each shareholder receives nine new share subscription rights for each share they already own)
• Hybrid debt issuance for a total of SEK 6.0 billion to the Swedish and Danish state, divided into two loans of 5.0 and 1.0 billion
• 81.3 per cent of the NOK 2.25 billion bond loan due November 2022 is converted into shares.
• 70.8 percent of the existing 1.5 billion hybrid bond is converted to shares.

On August 7, the following was modified:

• Hybrid debt of a total of 6,000 million is offered at higher interest rates
• 81.3 percent of the NOK 2.25 billion bond loan due in November 2022 will no longer be converted into shares. Instead, 100 percent of the loan will be converted to a new hybrid bond with a tiered interest rate.
• The conversion of the existing 1.5 billion hybrid bond will be increased from 70.8 to 90 percent. Also, a better course is offered. Creditors now get more shares to pay off the debt, as the conversion price is reduced from 1.89 to 1.16 crowns.

On August 14, the following was modified:

• All Danish and Swedish government interest surcharges for the new hybrid capital of 6 billion are increased by 0.9 percentage points.

Read the SAS Stock Announcement here

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