WOW air in breach of information disclosure requirements and financial covenants
Reykjavik, Iceland – March 9, 2019
Reference is made to WOW air’s (the "Company") up to EUR 100,000,000 Senior Secured Floating Rate Bonds 2018/2021 with ISIN: NO0010832785 (the "Bonds"). Terms defined in the terms and conditions of the abovementioned bond issue (the "Terms and Conditions") shall have the same meaning when used in this notice, unless otherwise defined herein.
According to the Terms and Conditions the Company shall make its Financial Report available by way of press release and by publication on the Company’s website as required by the applicable rules and regulations of the Regulated Market on which the Bonds are admitted to trading as per clause 11.1.(a)(iii), i.e. by 28 February 2019. The Company shall also send a Compliance Certificate to the Agent in connection with testing of the Maintenance Covenants in clause 12.1 of the Terms and Conditions which shall be tested by reference to each of the Financial Reports on each Reference Date.
It is hereby confirmed that the Company is in breach of the disclosure requirement of the Financial Report and the abovementioned Maintenance Covenants. Both breaches constitute as an Event of Default under the Terms and Conditions of the Bond.
The Company will initiate discussions with bondholders and submit a new written procedure in connection with Indigo Partners and WOW air’s continuing negotiations. As previously disclosed, no agreement has been reached with Indigo Partners.
This information is information that WOW air hf. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication at 10:00 GMT on March 9, 2019.