Reference is made to previous press releases by Icelandair Group (the “Company”) in which it was informed that the Company’s unsecured bondholders have temporarily waived the gross leverage covenants in clauses 12 (b) and 12 (c) (the “Covenants”) of the terms and conditions of the Company’s USD 190 million senior unsecured bonds carrying ISIN NO0010776982 (the “Bonds”), conditional on reaching a long-term agreement with the bondholders no later than 30 November 2018.

The waiver period expires on November 30th 2018, but the Company is preparing a new written procedure and will on Monday give instructions to Nordic Trustee & Agency AB (publ), being the agent under the Bonds, to initiate a written procedure in order to request that the bondholders vote in favor of a long-term solution.

The Company will distribute the written procedure through the bond trustee in accordance with the terms and conditions. The proposal includes, inter alia, as will be further described in the notice of written procedure:

  • The Issuer shall no later than January 15th 2019, repurchase one third (1/3) of the outstanding bonds at a price equal to 100.50%
  • The Issuer may redeem the outstanding bonds during the period from 1 February 2019 to (and including) 31 December 2019 at a price equal to;
    100.50% if exercised during the period from 1 February 2019 to (and including) 31 March 2019
  • 101.00% if exercised during the period from 1 April 2019 to (and including 31 December 2019.
  • Each Bondholder shall, between 30 June 2019 to (and including) 15 July 2019, have the right to request that the Bonds are repurchased at a price equal to 102.00%.
  • Clause 12 (Maintenance Tests) paragraph (d), Issuer’s Cash, shall be amended to read the lower of USD 100,000,000 or the outstanding amount under the bonds.
  • Clause 12 (Maintenance Tests) paragraph (b) and (c), Gross leverage, shall be waived for each test date from (and including) 30 September 2018 to (and including) 30 June 2019.
  • The Issuer will not make any dividend payments during the waiver period.

The notice of the written procedure will be available on the Company's website (www.icelandairgroup.is) and on Stamdata (www.stamdata.com).

DNB Markets is acting as the Company’s financial adviser

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