SAS — Capital/Financing Update 2017

Nov 8, 2017

Due to strong interest, SAS increases the potential private placement from approximately SEK 1 billion to approximately SEK 1.25 billion

Due to strong interest, SAS increases the potential private placement from approximately SEK 1 billion to approximately SEK 1.25 billion

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In a stock exchange announcement earlier today, SAS AB (publ) informed that it

was evaluating the preconditions for carrying out a private placement of common

shares for approximately SEK 1 billion. As a result of  strong investor

interest, SAS has decided to increase the volume of the potential issue to

approximately SEK 1.25 billion.

The increase of the potential issue is within the scope of the authorization

given by the Extraordinary General Meeting on November 3, 2017, which authorizes

the issue of not more than 66 million common shares corresponding to almost 20

percent of the current number of common shares outstanding. The authorization

granted by the Extraordinary General Meeting authorizes the Board of Directors

to decide on a private placement, with deviation from the preferential rights of

shareholders, to a number of selected Scandinavian and international

institutional investors, as well as anchor investors and other investors whose

participation, as deemed by the Board of Directors, would be beneficial for the

successful implementation of the share issue.

SAS intends to use any issue proceeds raised to strengthen its shareholders'

equity and commence future redemption of preference shares from February 2018.

Strengthening shareholders' equity would also enable SAS to obtain improved

terms and conditions for the financing of forthcoming aircraft investments and

the refinancing of maturing loans.

Following the potential completion of a new share issue, SAS has agreed to a six

months lock-up undertaking to not issue common shares after the private

placement, subject to certain provisions in the Articles of Association of SAS

and exemptions in accordance with market practice.

Nordea Bank AB (publ), SpareBank 1 Markets AS (Joint Global Coordinators and

Joint Bookrunners) and HSBC Bank plc (Joint Bookrunner) have been appointed to

evaluate the preconditions for conducting a private placement.

Important information

The release, publication or distribution of this press release in certain

jurisdictions may be restricted or unlawful, and any person in the jurisdictions

where this stock exchange announcement has been published or distributed should

inform themselves of, and observe, any such legal restrictions. This stock

exchange announcement does not constitute an offer, or an invitation to buy or

subscribe for, any securities in SAS AB in any jurisdiction.

SAS Investor Relations