easyJet PLC New five-year term loan facility (1507L)
January 11 2021 - 1:00AM
UK Regulatory
TIDMEZJ
RNS Number : 1507L
easyJet PLC
08 January 2021
8 January 2021
easyJet plc
('easyJet')
easyJet announces new five-year term loan facility
This announcement contains inside information.
easyJet today announces the continued strengthening of its
liquidity position with the signing of a new five-year term loan
facility of $1.87 billion (c.GBP1.4bn) underwritten by a syndicate
of banks and supported by a partial guarantee from UK Export
Finance under their Export Development Guarantee scheme. 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.
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 is also announcing that during calendar Q1 it will repay
and cancel part of its shorter term debt, namely the fully drawn
Revolving Credit Facility of $500m and Term Loans of c.GBP400m.
This will free up a number of aircraft assets to further strengthen
easyJet's balance sheet.
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.
Johan Lundgren, easyJet CEO 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 GBP4.5bn 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."
For further details please contact easyJet plc:
Institutional investors and analysts:
Michael Barker Investor Relations +44 (0)7985 890 939
Holly Grainger Investor Relations +44 (0)7583 101 913
Media:
Anna Knowles Corporate Communications +44 (0)7985 873 313
Edward Simpkins Finsbury +44 (0)7947 740 551 / (0)207 251 3801
Dorothy Burwell Finsbury +44 (0)7733 294 930 / (0)207 251 3801
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