SAS secures $505 million financing to aid restructuring (updated)

Sas AB

04/11/2023 18:01

(Recasts headline and first paragraph, adds details from
statement in paragraphs 3-4, background in paragraph 5)
       Nov 4 (Reuters) - Scandinavian airline SAS  SAS.ST  on
Saturday said it has entered into a new credit agreement for 5.5
billion Swedish crowns ($505.5 million) with U.S. investment
firm Castlelake to refinance its loans, increase liquidity and
support its exit from voluntary restructuring proceedings. 
    The loan provided by Castlelake will refinance and replace
the company's existing debtor-in-possession financing credit
agreement of 7.7 billion Swedish crowns ($707.6 million) entered
into with funds managed by Apollo Global Management APO.N , the
company said. 
    SAS said the financing comes as part of the transaction
structure agreed with a consortium consisting of Castlelake, Air
France-KLM S.A.  AIRF.PA , Danish investment firm Lind Invest,
and the Danish state following its bankruptcy proceedings. 
    Air France-KLM, Castlelake, and Lind Invest didn't
immediately respond to a Reuters request for comment. 
    In October, the company said that Castlelake would take a
stake of about 32% in SAS, Air France-KLM's will be around 20%
and the Danish state will hold about 26%.
        
  
($1 = 10.8814 Swedish crowns)

 (Reporting by Gursimran Kaur in Bengaluru; editing by Philippa
Fletcher and Emelia Sithole-Matarise)
 ((GursimranKaur.Mehar@thomsonreuters.com;))