Airline SAS has announced it signed a three-year SEK 3.3 billion (USD 336 million) revolving credit facility agreement, 90% guaranteed by Sweden and Denmark´s governments amid coronavirus crisis, the company said.
The COVID-19 pandemic has affected the airline industry, grounding flights and leaving carriers dealing with cutting costs and staff.
Many airlines have received or are seeking public backing. SAS, part-owned by Sweden and Denmark, arranged guarantees from its state owners earlier this year but only now finalised the credit agreement.
The guaranteed debt package, which has been approved by the European Commission, was implemented in the context of the COVID-19 crisis and is intended to support the airline´s liquidity and prepare for the recovery of its activities.
SAS said it would continue its work to cut costs and seek additional support from the Scandinavian countries.
SAS said as part of this it will further dialogue with the Norwegian government to be able to access up to NOK 1.7 billion of additional state guaranteed funding.
The credit facility was coordinated by SEB. Danske Bank, Nordea, SEB and Swedbank were the mandated lead arrangers.