SAS Group bonds gained in Stockholm trading after the company raised fresh cash through a sale and leaseback agreement on its airplanes and a private placement.
The yield on SAS’s convertible Swedish krona bond maturing on April 1, 2015, fell 40 basis points to 19.46 percent, its lowest level since July 2, according to prices by Nordea Bank AB compiled by Bloomberg. The yield on its 10.5 percent 2014 note slid 33 basis points to 6.79 percent.
SAS said today that it has raised 35 million euros ($46.5 million) in a private placement to support its longer-term liquidity level and to pay off maturing debt. In a separate statement, the Stockholm-based company said it also completed the sale and leaseback of six planes to ELFC and Deucalion Capital X Limited.
“My view would be that bond investors see it as positive that SAS is raising additional financing and improving the company’s financial flexibility,” Louis Landeman, an analyst at Danske Bank A/S, said in an e-mailed response to questions.