easyJet raises $771mn in sale/lease-backs, eyes more funding

easyJet (U2, London Luton) has said it “will continue to review its liquidity position on a regular basis and will continue to assess any further funding opportunities” after raising USD771 million from a sale and leaseback plan for 23 aircraft. The LCC described the sum in a stock exchange disclosure as being “at the upper end” of its guidance on the scheme that was presented in a trading update in May. The final transaction was executed with Bocomm Leasing subsidiary Jin Shan 37 Ireland, for the sale and leaseback of five A321-200neo for USD266 million, the carrier revealed. These aircraft, which vary in age between five and nine months, will be leased back until each of the aircraft reaches 10 years of age. The plan’s proceeds will be used “to maximise liquidity and further strengthen easyJet’s financial position,” easyJet said. Following the conclusion of the sale and leaseback plan, around 50% of the fleet remains unencumbered. In late June, the carrier said it had signed separate contractual agreements with SMBC Aviation Capital, JP Lease Products & Services, and Aero Capital Solutions for the sale and leaseback of 15 aircraft (two A321-200neo, three A320-200neo, three A320-200s, and seven A319-100s), whose ages range from new to 12 years of age. easyJet summarised in its stock exchange disclosure that it had now raised over GBP2.4 billion pounds (USD3.2 billion) since the start of the covid-19 pandemic. This comprises GBP400 million (USD529 million) from drawing down a revolving credit facility, GBP600 million (USD793 million) from the UK government’s Covid Corporate Financing Facility, GBP400 million from two term loans, GBP419 million (USD554 million) of equity issuance, and the GBP608 million (USD804 million) in proceeds from the sale and leaseback deals.