The Scandinavian Airlines says it is issuing 225 million dollars of convertible debt, meeting a hurdle set by key shareholders for their support in an upcoming stock issue.
SAS is half-owned by Sweden. Norway, and Denmark. Refinancing the debt was a condition for the airline’s planned 714 million dollar share issue.
Earlier this month SAS also reached agreement with unions over salary freezes and reduced pensions, which will lead to around 70 million dollars in annual savings.