SAS seeking consent to refinance through convertibles

Scandinavian Airlines (SAS) is quoted half a point tighter in credit defaults swaps today, with a mid of 11.25 points upfront – although the bid/offer differential has widened. The company will use its 7 April annual general meeting to seek shareholder consent to issue convertible bonds that will refinance SEK2 billion (€206 million) of bonds maturing this year.

SAS’s February traffic figures, reported on Friday, looked weak compared to other airlines. Group traffic fell 3.1% and seat capacity was down 10.2% year-on-year, with intercontinental and European seat capacity notably underperforming domestic intra-Scandinavian routes.