easyJet has introduced the signing of a brand new five-year mortgage facility price over £1.Four billion.
The deal is underwritten by a syndicate of banks and is partially supported by UK Export Finance below its Export Growth Assure scheme.
This system for industrial loans is out there to qualifying UK firms, doesn’t carry preferential charges or require state assist approval, however does comprise some restrictive covenants together with round dividend funds.
Nonetheless, the restrictions are suitable with its current dividend coverage, the low-cost service mentioned.
This five-year facility might be secured on plane upon drawing and can considerably prolong and enhance debt maturity profiles and strengthen the steadiness sheet by rising the extent of obtainable liquidity, an announcement added.
easyJet added that, in the course of the first quarter of the 12 months, it can repay and cancel a part of its shorter-term debt, particularly a completely drawn revolving credit score facility of $500 million and loans price round £400 million.
It will unencumber a lot of plane belongings to additional strengthen the steadiness sheet, the service mentioned.
Johan Lundgren, easyJet chief govt, mentioned: “This facility will considerably prolong and enhance easyJet’s debt maturity profile and improve the extent of liquidity accessible.
“easyJet has taken swift and decisive motion, having now secured greater than £4.5 million in liquidity because the starting of the pandemic.
“The mortgage facility, supplied on industrial phrases, displays constructive and collaborative work between easyJet, a number of banks and UK Export Finance.”
He added: “With our unmatched brief haul community and trusted model, easyJet is nicely positioned as clients return to the skies in 2021.”
British Airways secured an identical mortgage, valued at £2 billion, earlier this month.