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EasyJet Announces Signing Of New Five-Year Term Loan Facility

Published on Jan 12 2021 11:16 AM in General Industry tagged: Trending Posts / easyjet

EasyJet Announces Signing Of New Five-Year Term Loan Facility

EasyJet has announced that it has signed a new five-year term loan facility of $1.87 billion (approximately £1.4 billion) underwritten by a syndicate of banks and supported by a partial guarantee from...

EasyJet has announced that it has signed a new five-year term loan facility of $1.87 billion (approximately £1.4 billion) underwritten by a syndicate of banks and supported by a partial guarantee from UK Export Finance under its Export Development Guarantee scheme.

As stated by easyJet on its website, "the Export Development Guarantee scheme for commercial loans is available to qualifying UK companies, does not carry preferential rates or require state aid approval, and contains some restrictive covenants including around dividend payments, however these are compatible with easyJet's existing dividend policy."

EasyJet said on its website, "This five-year facility will be secured on aircraft upon drawing and will significantly extend and improve easyJet's debt maturity profile and strengthen easyJet's balance sheet by increasing the level of available liquidity."

EasyJet also announced on its website "that during calendar Q1, it will repay and cancel part of its shorter term debt, namely the fully drawn revolving credit facility of $500 million and term loans of c.£400 million. This will free up a number of aircraft assets to further strengthen easyJet's balance sheet."

The airline added, "As previously indicated, easyJet will continue to review its liquidity position on a regular basis and will continue to assess further funding opportunities, should the need arise."

CEO Statement

In a statement published on easyJet's website, the airline's CEO, Johan Lundgren, said, "This facility will significantly extend and improve easyJet's debt maturity profile and increase the level of liquidity available. EasyJet has taken swift and decisive action, having now secured more than £4.5 billion in liquidity since the beginning of the pandemic.

"The loan facility, provided on commercial terms, reflects constructive and collaborative work between easyJet, multiple banks and UK Export Finance.

"With our unmatched short haul network and trusted brand, easyJet is well-positioned as customers return to the skies in 2021."

© 2021 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.

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