SAS Secures USD 700 Million in Debtor-in-Possession Financing

SAS AB (“SAS” or the “Company”) announces that it has entered into a debtor-in-possession (“DIP”) financing credit agreement for USD 700 million (the equivalent of approximately SEK 7.0 billion) with funds managed by Apollo Global Management (“Apollo”). DIP financing is a specialized type of bridge financing used by businesses that are restructuring through a chapter 11 process. The DIP financing, along with cash generated from the Company’s ongoing operations, enables SAS to continue meeting its obligations throughout the chapter 11 process. The DIP financing is subject to approval by the U.S. Bankruptcy Court for the Southern District of New York (the “Court”). The DIP financing is structured as a delayed draw term loan with a nine-month maturity from the Closing Date. The maturity date can be extended incrementally up to an 18-month term (see further below). SAS selected Apollo’s DIP financing proposal following a competitive process and considers the terms of the DIP financing to be on market terms.

“We are pleased to have secured this financing commitment from investment firm Apollo Global Management, which follows an extensive and competitive process”, says Carsten Dilling, Chairman of the Board of SAS. “With this financing, we will have a strong financial position to continue supporting our on-going operations throughout our voluntary restructuring process in the U.S. Apollo Global Management has a long track record of helping build stronger, more competitive businesses and extensive experience in the aviation sector. With their substantial financing commitment, we can now focus entirely on accelerating the implementation our SAS FORWARD plan, and to continue our more than 75-year legacy of being the leading airline in Scandinavia.”

“SAS is one of Europe’s leading airlines and we are pleased to support the business operations as they implement their restructuring plans to emerge a stronger company,” said Apollo Partner Antoine Munfakh. “At Apollo we have a wealth of experience in commercial aviation and fully support the comprehensive SAS FORWARD plan as well as the goals of recapitalizing the Company upon its emergence from the chapter 11 process.”

SAS anticipates receiving Court approval for its DIP financing by mid-September 2022.