Indigo Partners could invest up to USD75 million in WOW air (WW, Reykjavik Keflavik) following the signing of a term sheet last week.

The Icelandic low-cost carrier said in a statement that among the agreement's conditions are that certain amendments and a waiver are to be made to the terms and conditions of WOW Air's EUR100 million Senior Secured Floating Rate Bonds for 2018/2021.

Under the terms of the deal, the US low-cost investment specialist will acquire an unspecified shareholding in WOW Air. Additionally, Indigo has also contemplated issuing a new super senior convertible loan to WOW to fund the recovery of its business.

On the whole, Indigo’s investment, assuming a successful due diligence, structuring and documentation would be for an amount up to USD75 million.

As part of cost-cutting measures, WOW Air has also retrenched 111 full-time employees after having announced it would cut its fleet from 20 to 11 aircraft.