Icelandair Group hf.: Information Memorandum regarding upcoming offering of shares

Attached is an Information Memorandum for potential investors regarding the upcoming offering of shares in Icelandair Group. The memorandum will be followed by the publication of a Prospectus in the upcoming week. Although Icelandair Group entered the Covid-19 pandemic with a strong financial position, the Company will need to strengthen its liquidity position for the upcoming period where flight operations are expected to be at a minimum level. As previously announced, Icelandair Group...

Reykjavík, 19/08/2020 (informazione.news - comunicati stampa - turismo)

Attached is an Information Memorandum for potential investors regarding the upcoming offering of shares in Icelandair Group. The memorandum will be followed by the publication of a Prospectus in the upcoming week.

Although Icelandair Group entered the Covid-19 pandemic with a strong financial position, the Company will need to strengthen its liquidity position for the upcoming period where flight operations are expected to be at a minimum level. As previously announced, Icelandair Group intends to raise ISK 20 billion through sale of new shares which will provide vital liquidity for the Company. The Icelandic Government has already approved to provide the Company with a guarantee for a credit facility amounting to up to USD 120 million. The guarantee will be subject to terms for the guarantee and the credit facility being agreed upon between the parties, the approval of the Icelandic Parliament and a successful offering of shares in Icelandair Group.

For the last few months, the Company has been working on various mitigating measures which will strengthen Icelandair Group's liquidity and competitiveness for the short-term and long-term such as the following:

Due to these measures, the financial position of Icelandair Group is stronger than what was expected at the time when the shareholders' meeting was convened on 22 May 2020. The Company aims to sell new shares of ISK 20 billion in nominal terms for a price of ISK 1.0 per share. Furthermore, in case of oversubscription, the board of directors would be authorized to increase the share offering by up to 3 billion resulting in a maximum offering size of ISK 23 billion. Additionally, a proposal will be submitted regarding the authority of the board of directors to issue warrants, which will be stapled to new shares issued following the upcoming share offering, amounting to 25% of the nominal value of the total shares issued. The offering will be held in September, conditioned upon the approval of shareholders' meeting in order to renew the authority to increase the Company's share capital. The Company will hold a shareholders' meeting on 9 September 2020.

Contact information:
Investors: Iris Hulda Thorisdottir, Director Investor Relations. E-mail: iris@icelandairgroup.is
Media: Asdis Petursdottir, Director Communications. E-mail: asdis@icelandair.is

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