Iceland's PLAY Airlines has secured $20 million of subscription commitments through a two year convertible bond issuance.
This comes after two of the airline’s largest shareholders announced a proposed takeover offer for all outstanding shares in the company, with plans to delist the airline from the Icelandic stock exchange.
“We had many constructive conversations with shareholders, who expressed a clear desire for the company to remain listed on the main market of the stock exchange, that’s why we pursued this financing route instead," said Einar Orn Olafsson, CEO of PLAY.
Under a newly proposed business model set out in June, the airline plans to operate with four aircraft from Iceland, operated by Icelandic crews under local agreements. Additionally, six aircraft will be leased out for profitable projects with other airlines.
All North American flights will cease in October 2025, and the number of city destinations in Northern Europe will be reduced. Operations will transition to a Maltese air operator certificate, and the Icelandic AOC will be returned.
“The response to our new business model has been very positive, and it’s encouraging to see increased participation from institutional investors in this financing round," Olafsson added.