EasyJet Says ‘Yes’ to Five-year Loan Facility

Photo source: easyJet PLC

British low-cost carrier easyJet PLC agreed to a new 1.87 billion dollar five-year term loan with a syndicate of banks which will boost company liquidity in the aftermath of Covid-19.

The airline added that it would repay and cancel part of its shorter-term debt in the first quarter of the year, including a fully drawn Revolving Credit Facility of 500 million dollars and loans amounting to approximately 542.6 million dollars.

“This will free up a number of aircraft assets to further strengthen easyJet’s balance sheet,” the carrier said.

The listed company said the loan is supported by a partial guarantee from UK Export Finance under its Export Development Guarantee Scheme, and as such doesn’t carry preferential rates or require state aid approval.

“This facility will significantly extend and improve easyJet’s debt maturity profile and increase the level of liquidity available,” said CEO Johan Lundgren in a statement.

In an attempt last year to cover losses incurred by the impact of the coronavirus pandemic, easyJet was granted a 600-million-pound loan by the UK government, cut 4,500 jobs, and tapped shareholders for 419 million pounds.