As Icelandair Group (the “Company”) announced in a stock exchange release on 21 December 2018, a sufficient number of bondholders of ISIN N00010776982, with an aggregate outstanding amount of USD 190,000,000, have voted in favour of the Company’s request for amendment and restatement of the bond’s terms and conditions. The request included a clause regarding the redemption of 1/3 of the outstanding bonds on 15 January 2019. Icelandair Group has made an identical request to bondholders of ISIN IS0000025427, with an aggregate outstanding amount of USD 23,660,000, cf. the Company’s stock exchange release on 21 December 2018. Thus, the expected total redemption of bonds on 15 January 2019 amounts to approximately USD 71 million.
In the Company’s stock exchange release on 27 December 2018 it was announced that Icelandair Group had entered into a new financing facility with BOC Aviation regarding the financing of pre-delivery payments of the Boeing 737 MAX Aircraft on order from The Boeing Company which will be delivered in 2019 and 2020. The final scheduled delivery date of the aircraft is in March 2020. The total amount of the financing facility is approximately USD 200 million but the Company’s liquidity will increase by USD 160 million before year-end due to the agreement since Icelandair Group had already made the pre-delivery payments with its own funds.
In addition to the PDP facility the parties have agreed to a Sale and Leaseback of two Boeing 737 MAX aircraft, one of them to be delivered in 2019 and the second one in 2020. The lease period is 12 years but includes a purchase option 30 months into the lease.
Icelandair Group has also entered into agreements for Sale and Leaseback of two Boeing 737 MAX Aircraft with SMBC Aviation Capital. The lease period is approximately 9 years. Now, the Company has completed the financing of all six Boeing 737 MAX aircraft, which will be delivered from The Boeing Company in 2019, but the other three aircraft were financed with a Sale and Leaseback agreement with BOCOMM Leasing Aviation, cf. the Company’s stock exchange release on 16 May 2017.
Furthermore, Icelandair Group assumes that a single offering of shares in nominal value of up to ISK 625 million will take place before the end of the first quarter of 2019, cf. the Company’s stock exchange releases on 30 November 2018 and 10 December 2018.
Bogi Nils Bogason, President & CEO of Icelandair Group:
“The above mentioned financing arrangements are in line with the Company’s strategy of keeping a strong liquidity position and a flexible balance sheet. At year-end 2018, Icelandair Group had over USD 250 million in cash and cash equivalents. In addition, the Company owned 40 unencumbered aircraft. Thus, the Company is well prepared to handle fluctuations in the business environment and seize the opportunities that may arise.”
For further information, please contact:
Bogi Nils Bogason, President & CEO
Telephone: +354 5050300