easyJet has confirmed the sale and leaseback of nine aircraft with two counterparties, which will generate $398.6 million total cash proceeds for the airline.
The first transaction was executed with Wilmington Trust SP Services (Dublin) 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 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 states that it 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”.