EasyJet PLC said Monday it had agreed a new $ 1.87 billion five-year loan with a syndicate of banks, and that it will repay and write off part of its short-term debt in the first quarter.
The London-registered budget airline said the loan is backed by a guarantee in part from the UK Export Fund under the Export Development Guarantee Scheme, so there are no favorable rates or need state aid permission.
The carrier said it would repay and cancel its $ 500 million revolving credit facility and term loans of about 400 million pounds ($ 542.6 million). The company said this would free up a number of aircraft assets.
“This five-year facility will be secured on aircraft when towed and will significantly expand and enhance EasyJet’s mature debt profile and strengthen EasyJet’s balance sheet by increasing the amount of liquidity available,” the company said.