(Bloomberg) -- SAS AB will raise 12 billion kronor ($1.28 billion) to fund the Scandinavian airline’s comeback, in a recapitalization backed by its biggest owners -- the Swedish and Danish governments and the Wallenberg family.

The plan includes share sales, a rights issue and the issue of hybrid notes, as well as the conversion of some 3.75 billion kroner of debt into equity, according to a statement Tuesday.

In all, the moves will restore 14.8 billion in equity, SAS said. The airline has already implemented deep job cuts to counteract the effects of the pandemic. The fund-raising will allow the carrier “to continue as a key provider of important Scandinavian airline infrastructure,” it said.

The governments of Denmark and Sweden already the two largest shareholders, along with No. 3 owner the Knut and Alice Wallenberg Foundation, have agreed to participate in the offerings.

Fundraising Highlights:

  • Issue of 2 billion kronor in common stock to major shareholders
  • Common stock rights issue of about 4 billion kronor
  • 6 billion kronor of hybrid notes issued to major shareholders
  • Conversion of 2.25 billion kronor in senior unsecured fixed rate bonds due November 2022 into common shares
  • Conversion of 1.5 billion kronor in subordinated perpetual floating rate capital securities into common shares.

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