Icelandair Group hf.: Upcoming Offering of Shares

As previously announced, Icelandair Group is preparing a public offering of shares in the Company. The timeline for the offering of shares has been adjusted and the offering will be held in September, conditioned upon the approval of shareholders’ meeting in order to renew the authority to increase the Company’s share capital. Thus, the Company will call a new shareholders’ meeting in the upcoming days. Additionally, it is expected that a proposal will be submitted regarding the authority of the board of directors to issue warrants, which will be stapled to new shares issued following the upcoming share offering, amounting to 25% of the nominal value of the total shares issued. Rights according to the warrants could be exercised in separate steps for up to two years in accordance with further terms decided upon by the board of directors.

The Company aims to sell new shares of ISK 20 billion in nominal terms for a price of ISK 1.0 per share. Furthermore, in case of oversubscription, the board of directors would be authorized to increase the share offering by up to 3 billion resulting in a maximum offering size of ISK 23 billion.

The Company’s negotiations with the Icelandic Government, along with Íslandsbanki and Landsbankinn, regarding a government guaranteed credit facility are in the final stages. Conditioned upon the approval of the Government for the credit facility (which will be subject to a further approval of the Icelandic Parliament), the Company expects to publish an information memorandum for potential investors in the upcoming days.