easyJet has raised £305 million in fresh liquidity following the sale and lease back of a number of aircraft.
The low-cost carrier confirmed arrangements for nine aircraft with two counterparties this morning. The money will be used to further strengthen the financial position at easyJet, a statement explained.
The first transaction was executed with Wilmington Trust SP Services (Dublin) for the sale and leaseback of five Airbus A320 family aircraft. The aircraft will generate cash sales proceeds of £147 million, and are leased for an average term of 117 months, creating lease obligations of £124 million.
The assets had a net book value at the time of transaction of approximately £116 million.
The second transaction was executed with Sky High 112 Leasing Company for the sale and leaseback of four Airbus A320 family aircraft. The aircraft will generate cash sales proceeds of £159 million, and are leased back for an average of 116 months, creating lease obligations of £108 million.
The assets had a net book value at the time of transaction of approximately £140 million.
Over the terms of the nine leases the average incremental net annual headline cost reflected in easyJet’s income statement will be circa £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 per cent of the fleet.