SAS Secures $505 Million Financing for Restructuring Efforts

Scandinavian airline SAS has managed to secure a whopping $505 million in financing to aid its restructuring efforts. The airline has entered into a new credit agreement with U.S. investment firm Castlelake, which will refinance its loans, increase liquidity, and support its exit from voluntary restructuring proceedings. This new loan will replace the company’s existing debtor-in-possession financing credit agreement with funds managed by Apollo Global Management. The financing is part of a transaction structure agreed upon with a consortium consisting of Castlelake, Air France-KLM, Danish investment firm Lind Invest, and the Danish state. In October, it was announced that Castlelake would take a 32% stake in SAS, while Air France-KLM and the Danish state would hold around 20% and 26% respectively.