EasyJet has secured a new five-year term loan facility of US$1.87 billion (c.£1.4 billion), backed by a partial guarantee from the UK government’s Export Development Guarantee scheme.
The funding will be secured against the carrier’s fleet and help the airline bolster its liquidity.
The UK government scheme for commercial loans is available to qualifying UK companies, does not carry preferential rates or require state aid approval, and contains some restrictive covenants including around dividend payments, however these are compatible with the airline’s existing dividend policy, easyJet said in a statement.
Johan Lundgren, easyJet CEO said: "This facility will significantly extend and improve easyJet's debt maturity profile and increase the level of liquidity available. easyJet has taken swift and decisive action, having now secured more than £4.5 billion in liquidity since the beginning of the pandemic.
"With our unmatched short haul network and trusted brand, easyJet is well positioned as customers return to the skies in 2021."
The airline announced its first ever annual loss of £1.27 billion in November.