Easyjet secures $2bn loan as coronavirus pain goes on

posted on 11th January 2021 by Eddie Saunders
Easyjet secures $2bn loan as coronavirus pain goes on

By , cityam.com

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

In a statement, the carrier said that the loan would “significantly extend and improve easyJet’s debt maturity profile and strengthen easyJet’s balance sheet by increasing the level of available liquidity”.

The loan, which is underwritten by a syndicate of banks, is also partially guaranteed by UK Export Finance (UKEF).

It comes as airline once again pare back their schedules in light of new lockdown measures and restrictions on international travel.

Since the pandemic began last year Easyjet has taken numerous measures to protect its balance sheet amid the worst downturn on record for aviation.

It has raised over £900m through the sale-and-leaseback of aircraft, as well as raising nearly £420m from investors in the summer.

The budget carrier also drew down £600m from the Bank of England’s Covid Corporate Financing Facility (CCFF).

Easyjet chief executive 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 £4.5bn 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.”