easyJet PLC Aircraft Sale and Leaseback (1122W)
August 14 2020 - 2:00AM
UK Regulatory
TIDMEZJ
RNS Number : 1122W
easyJet PLC
14 August 2020
14 August 2020
easyJet plc
('easyJet')
easyJet Statement - Aircraft Sale and Leaseback
easyJet is pleased to announce the successful conclusion of its
previously announced sale and leaseback programme for a total of 23
aircraft, generating total proceeds of $771 million (GBP608m), at
the upper end of the GBP500-650 million anticipated proceeds first
highlighted in our trading update of 28 May 2020.
The final transaction was executed with Jin Shan 37 Ireland
Company Limited (a wholly owned subsidiary of BOCOMM Leasing) for
the sale and leaseback of five A321neo aircraft for aggregate cash
sales proceeds of $266 million (approximately GBP203m). The
proceeds of the sale will be used to maximise liquidity and further
strengthen easyJet's financial position.
The net book value of the aircraft, which vary in age from five
to nine months of age, was approximately GBP167 million as at 31
March 2020. The aircraft will be leased back until each of the
aircraft reach 10 years of age. The lease obligations generated
amount to a total of approximately GBP122.3 million. Over the terms
of the leases the average incremental net annual headline cost
reflected in easyJet's income statement will be in the mid-single
digit millions of pounds. Following the conclusion of the sale and
leaseback programme around 50% of the fleet remains
unencumbered.
Following the successful conclusion of this sale and leaseback
programme, easyJet has now raised over GBP2.4 billion since the
beginning of the Covid-19 pandemic. This comprises GBP400 million
from drawing down our Revolving Credit Facility, GBP600 million
from the UK government's Covid Corporate Financing Facility, GBP400
million from two term loans, the GBP608 million in proceeds from
the sale and leaseback programme and GBP419 million of equity
issuance. easyJet will continue to review its liquidity position on
a regular basis and will continue to assess any further funding
opportunities.
For further details please contact easyJet plc:
Institutional investors and analysts:
Michael Barker Investor Relations +44 (0)7985 890 939
Holly Grainger Investor Relations +44 (0)7583 101 913
Media:
Edward Simpkins Finsbury +44 (0)7947 740 551 / (0)207 251 3801
Dorothy Burwell Finsbury +44 (0)7733 294 930
A copy of this statement is available at
http://corporate.easyjet.com/investors
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END
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