Jan 8 (Reuters) – UK airline EasyJet announced a new five-year term loan facility of $1.87 billion (c.£1.4 billion) on Friday, which will be secured on aircraft upon drawing. “This facility will significantly extend and improve EasyJet’s debt maturity profile and increase the level of liquidity available,” CEO Johan Lundgren said in a statement. The facility is underwritten by a syndicate of banks and supported by a partial guarantee from UK Export Finance under their Export Development Guarantee scheme, the airline said.
The airline had taken a 600 million pound loan from the UK government, cut 4,500 jobs and tapped shareholders for 419 million pounds last year to survive the impact of the pandemic.
The company said that during the first quarter of this year, it will repay part of its shorter term debt, namely the fully drawn Revolving Credit Facility of $500 million and Term Loans of c.£400 million, adding that this will free up a number of aircraft assets.
(Reporting by Vishal Vivek in Bengaluru; Editing by David Gregorio)