REG-easyJet plc New undrawn five-year sustainability linked term loan facility

easyJetAnnouncement

26/06/2023 13:30

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   easyJet plc (EZJ)
   New undrawn five-year sustainability linked term loan facility

   26-Jun-2023 / 13:15 GMT/BST

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   26 June 2023

                                        

                                  easyJet plc

                                  ('easyJet')

                                        

                                        

    easyJet announces new undrawn five-year sustainability linked term loan
      facility, replacing an existing, partially drawn, term loan facility

    

   easyJet today announces the signing of a new undrawn five-year
   sustainability linked term loan facility (“new facility”) of $1.75
   billion underwritten by a syndicate of banks and supported by a partial
   guarantee from UK Export Finance under their Export Development Guarantee
   scheme. The Export Development Guarantee scheme for commercial loans is
   available to qualifying UK companies and does not carry preferential rates
   or require state aid approval.

    

   The new term loan facility replaces easyJet’s existing $1.77 billion term
   loan facility. easyJet is capitalising on its sector-leading investment
   grade balance sheet to fully repay the existing UKEF drawn balance of $950
   million, which incurred interest at a floating rate. This facility has now
   been cancelled, resulting in no aircraft currently being encumbered within
   the Group.

    

   This new five-year sustainability linked facility will be undrawn
   initially. Upon any draw down, cash will be secured against aircraft. The
   new facility extends easyJet's debt maturity profile, whilst maintaining
   available liquidity and reduces the group net financing costs.

    

   A sustainability key performance indicator linked to a reduction in carbon
   emission intensity in line with our SBTi validated target is embedded in
   the financing cost – there is a margin adjustment mechanism (upward or
   downward) conditional to the achievement of specific milestones.

     

   Kenton Jarvis, easyJet CFO said:

    

   “This new facility extends easyJet's maturity profile, whilst maintaining
   our high liquidity position. The group’s net financing costs will
   significantly reduce over the coming years with over one billion pounds of
   debt retired this financial year.

   “This facility strengthens our balance sheet, supports our investment
   grade credit ratings and further shows our commitment to our SBTi-aligned
   sustainability targets.”

    

   For further details please contact easyJet plc:

   Institutional investors and analysts:
   Michael Barker     Investor Relations       +44 (0) 7985 890 939
   Adrian Talbot      Investor Relations       +44 (0) 7971 592 373
    
   Media:
   Anna Knowles       Corporate Communications +44 (0) 7985 873 313
   Olivia Peters      Teneo                    +44 (0) 20 7353 4200
   Harry Cameron      Teneo                    +44 (0) 20 7353 4200

    

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:           GB00B7KR2P84
   Category Code:  MSCM
   TIDM:           EZJ
   LEI Code:       2138001S47XKWIB7TH90
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   253506
   EQS News ID:    1665745


    
   End of Announcement EQS News Service

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