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Like most European airlines, cash-strapped easyJet had been
hoping to be gearing up for a recovery this spring, but with
Britain, its biggest market, back in lockdown, flying is
expected to stay at minimal levels for several more months.
EasyJet said the new loan facility improved its debt maturity
profile and it planned to repay and cancel the full drawn
revolving credit facility of $500 million and term loans of
about 400 million pounds ($540 million) in the first quarter.
To survive the pandemic so far, easyJet has axed 4,500 staff,
tapped shareholders for cash, and sold dozens of its aircraft,
and it did not rule out further action in its statement on
Monday.
"easyJet will continue to review its liquidity position on a
regular basis and will continue to assess further funding
opportunities, should the need arise," the airline said.
The new $1.87 billion loan was underwritten by a syndicate of
banks and backed by guarantees provided by a scheme from
Britain's UK Export Finance, which includes some restrictions
around future dividend payments.
Other companies hit by COVID-19 travel restrictions, including
Britain's Rolls-Royce and British Airways, owned by IAG, have
also used UK Export Finance guarantees.
EasyJet said repaying its shorter term debt would "free up" a
number of aircraft assets further strengthening its balance
sheet.
($1 = 0.7402 pounds)
(Reporting by Sarah Young; editing by Estelle Shirbon)
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