Airline SAS agrees $1.5 bln financial boost with investors

SAS’s plan includes a deeply discounted share issue to its main owners and a broader rights issue, as well as new hybrid notes and the conversion of bonds.

“For current shareholders, it is a choice between the plague and cholera. If you do not join and subscribe for new shares, a massive dilution will occur,” said Nordnet analyst Per Hansen, pointing to the rights issue price of 1.16 crowns per share, which compares with Monday’s closing price of 8.88 crowns.

At 0838 GMT, SAS shares were down 9% at 8.04 crowns, taking year-to-date losses to around 50%.

The airline, which Gustafson said would have 35-40 planes in the air this summer against around 150 normally, does not see traffic returning to near pre-pandemic levels until 2022.

Norway, which sold its last stake in SAS in 2018, will pay the airline to continue its network in the country, and has offered loans to the sector, but is not part of the recapitalisation plan.

($1 = 9.3425 Swedish crowns)

($1 = 9.7470 Norwegian crowns) (Reporting by Anna Ringstrom and Niklas Pollard; Additional reporting by Simon Johnson and Jacob Gronholt-Pedersen; Editing by Jason Neely and Mark Potter)

Football news:

Maurizio Sarri: One day, Higuain needs to be pampered, the other-nailed to the wall
Captain Huesca's armbands-a textbook on the history and geography of Spain
Barcelona denied organizing attacks on its players in social networks
Rangnick will combine work of the head coach and technical Director in Milan
Veron-Messi: If you want to come to Estudiantes, the ten is yours!
World champion-1970 Tostao: Only a hybrid of Ronaldo and Messi can be compared to Pele
Diego Simeone: real get more penalties because of VAR, because they attack more