SAS AB 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.
DIP financing is a specialised 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 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. SAS selected Apollo’s DIP financing proposal following a competitive process and considers the terms of the DIP financing to be on market terms.