SAS receives court approval for US$700 million debtor-in-possession financing

SAS AB (“SAS” or the “Company”) announces that the United States Bankruptcy Court for the Southern District of New York (the “Court”) approved SAS‘ debtor-in-possession (“DIP”) financing credit agreement for $700 million with funds managed by Global Apollo Management (“Apollo”). The terms of the DIP Financing Credit Agreement are substantially similar to terms previously announced by SAS on August 14, 2022. The Court has indicated that it will soon issue an order approving the DIP financing.

On August 14, 2022, SAS announced that it has entered into a DIP financing credit agreement for $700 million with Apollo, subject to Court approval. The terms of the DIP Funding Credit Agreement approved by the Court today are substantially similar to terms previously announced by SAS.

DIP financing is a specialized type of bridge financing used by companies restructuring through a Chapter 11 process. DIP financing, along with cash generated from ongoing Company operations, allows SAS to continue to meet its obligations throughout the Chapter 11 process.

Anko van der Werff, President and CEO of SAScomments:

“With the Court’s approval of our DIP financing, we are making significant progress in our Chapter 11 process. The DIP financing agreement with Apollo followed a thorough and competitive process that we conducted to achieve the best outcome of funding for SAS, and we are happy that the Court approved it. I would like to thank our employees for their hard work and dedication, and our business partners for their support as we continue to move forward in this process. We continue to progress with the SAS FORWARD, and our work to build a competitive and even better airline for our customers.”

About Global Apollo Management

Global Apollo Management is a leading alternative asset manager, headquartered in WE and operating globally. Apollo is listed on the New York Stock Exchange (NYSE: APO). Apollo has over three decades of experience investing and working with leading management teams to build and transform their businesses. Apollo provides businesses with innovative capital solutions and support to finance their growth and position businesses for long-term success.

Additional information on the Chapter 11 process and the implementation of SAS FORWARD

On July 5, 2022to accelerate the implementation of its global business transformation plan SAS FORWARD, SAS announced that he voluntarily filed for Chapter 11 in the WE, a well-established and flexible legal framework for the restructuring of companies operating in several jurisdictions. Through this process, SAS aims to reach agreements with key stakeholders, restructure the company’s debt obligations, reconfigure its aircraft fleet and emerge with a significant injection of capital. The SAS The FORWARD plan includes the collection of at least 9.5 billion Swedish crowns into new equity as well as the reduction or conversion of more than 20 billion Swedish crowns common equity debt (the majority of which is on-balance sheet debt), including government hybrid bonds, commercial hybrid bonds, Swiss bonds, government term loans, aircraft lease bonds and contractual maintenance obligations and other enforceable contractual obligations. The new equity fundraising and debt-to-equity conversions envisaged as part of the SAS FORWARD will result in very substantial dilution for existing shareholders. SAS expects to complete its court-supervised process within the WE in 9 to 12 months from the start of the Chapter 11 process in July 2022.

Additional information about the Company’s voluntary Chapter 11 process is available on the Company’s dedicated Restructuring website, https://sasgroup.net/transformation. Court filings and other documents related to the Chapter 11 process in the WE are available on a separate website administered by SASclaims agent, Kroll Restructuring Administration LLCat https://cases.ra.kroll.com/SAS. Information is also available by calling (844) 242-7491 (WE/Canada) or +1 (347) 338-6450 (International), as well as by e-mail to [email protected]

Advisors

Weil, Gotshal & Manges LLP is global legal counsel and Mannheimer Swartling Advokatbyrå AB is Swedish legal counsel to SAS. Seabury Securities LLC and Skandinaviska Enskilda Banken AB are investment bankers, Seabury is also a restructuring adviser, and FTI Council acts as a financial advisor to SAS.

PJT Partners LP acts as financial advisor to Apollo. Akin Gump Strauss Hauer & Feld LLP acts as legal counsel to Apollo. Watson Farley & Williams LLP acts as special aviation advisor to Apollo.

For more information, please contact:

SAS Press office, +46 8 797 29 44

Louise Bergström, Vice President Investor Relations, +46 70 997 0493

SASScandinavia’s leading airline, with its main hubs in Copenhagen, Oslo and stockholmflies to destinations in Europe, United States and Asia. Driven by a Scandinavian heritage and enduring values, SAS aims to be the world leader in sustainable aviation. We will reduce total carbon emissions by 25% by 2025, using more sustainable aviation fuel and our modern fleet with fuel-efficient aircraft. In addition to air operations, SAS offers ground handling, technical maintenance and air freight services. SAS is a founding member of Star Alliance™ and, together with its partner airlines, offers an extensive network worldwide. Learn more about https://www.sasgroup.net

FURTHER INFORMATION

The press release does not constitute an offer to sell or issue, nor the solicitation of an offer to purchase, acquire or subscribe for shares or any other financial instrument of SAS.

This press release contains forward-looking statements that reflect SAScurrent view of future events as well as financial and operational development. Such statements may include, but are not limited to, any statements preceded, followed by, or including words such as “intends”, “evaluates”, “expects”, “may”, “plans”, “estimate” and other expressions implying indications or predictions. regarding future development or trends and other words and terms with a similar or negative meaning. These forward-looking statements have been prepared for illustrative purposes only, are not based on historical facts, are not guarantees of future performance, reflect SAS‘ beliefs and expectations, and are subject to known and unknown risks, uncertainties and assumptions and other factors that could cause actual events and performance to differ materially from any future event or performance expected, expressed or implied by these forward-looking statements. Due to these risks, uncertainties, assumptions and other factors, you should not place undue reliance on these forward-looking statements as a prediction of actual future events or otherwise. The information in this press release is subject to change without notice and, except as required by applicable law, SAS does not assume any responsibility or obligation to publicly update or review any of the forward-looking statements contained herein, whether as a result of new information, future events or otherwise. Nothing in this press release constitutes or should be construed as constituting a profit forecast.

https://news.cision.com/sas/r/sas-receives-court-approval-for-usd-700-million-in-debtor-in-possession-financing,c3628984

https://mb.cision.com/Main/290/3628984/1625274.pdf

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