Pan-Scandinavian airline SAS has raised an additional one billion Swedish kroner through a new bond issue, the company has announced. The additional capital, which forms part of a general refinancing of the company’s debt, will be used to service existing loans. The company, which has been struggling with huge debts and a decreased market share, is in the process of a major business restructure.
The bonds mature on May 14, 2012, but SAS has the option to extend their maturity date for an additional period of twelve months. According to a stock exchange message issued by the company today, the rights issue was oversubscribed by 50 percent.
The bond issue comes two days after business ratings bureau Moody’s confirmed it rated SAS shares as “stable”, quashing fears of a possible downgrade. As a result, the group’s so-called Probability Default Rating improved from Caa2 to Caa1
Direkt
The bonds mature on May 14, 2012, but SAS has the option to extend their maturity date for an additional period of twelve months. According to a stock exchange message issued by the company today, the rights issue was oversubscribed by 50 percent.
The bond issue comes two days after business ratings bureau Moody’s confirmed it rated SAS shares as “stable”, quashing fears of a possible downgrade. As a result, the group’s so-called Probability Default Rating improved from Caa2 to Caa1
Direkt
