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easyJet PLC - Aircraft Sale and Leaseback

RNS Number : 2595D
easyJet PLC
27 October 2020
 

27 October 2020

easyJet plc

('easyJet')

 

 

This announcement contains inside information

 

easyJet Statement - Aircraft Sale and Leaseback

 

Following high levels of demand from the operating lease marketplace, easyJet is pleased to confirm that it has engaged with a number of operating lessors to raise further liquidity, which will be used to further strengthen easyJet's financial position. easyJet confirms the sale and leaseback of nine aircraft with two counterparties. The transactions generate total cash proceeds of $398.6 million (£305.7m).

 

The first transaction was executed with Wilmington Trust SP Services (Dublin) Limited for the sale and leaseback of five Airbus 320 family aircraft. The aircraft will generate cash sales proceeds of $191.1m (approximately £146.5m), and are leased for an average term of 117 months, creating lease obligations of £123.7m. The assets had a net book value at the time of transaction of approximately £116.2m.

 

The second transaction was executed with Sky High 112 Leasing Company Limited for the sale and leaseback of four Airbus 320 family aircraft. The aircraft will generate cash sales proceeds of $207.5m (approximately £159.1m), and are leased back for an average of 116 months, creating lease obligations of £108.0m. The assets had a net book value at the time of transaction of approximately £140.2m.

 

Over the terms of the nine leases the average incremental net annual headline cost reflected in easyJet's income statement will be c. £15 million, which is driven by increases in interest charges and depreciation. 

 

Once these two transactions are completed, easyJet will retain 152 fully owned and unencumbered aircraft, representing approximately 44% of the fleet.

 

easyJet will continue to review its liquidity position on a regular basis and will continue to assess further funding options, including those that exist in the robust sale and leaseback market.

 

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:

Anna Knowles          Corporate Communications +44 (0)7985 873 313

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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