EasyJet Announces Successful Pricing of EUR 850 Million Debt Issuance

easyJet plc disclosed its successful pricing of EUR 850 million in bonds under its Euro Medium Term Note (EMTN) programme, set to be issued on March 20, 2024. These bonds, guaranteed by easyJet FinCo B.V. and easyJet Airline Company Limited, are due in 2031. They feature a coupon rate of 3.750% and are expected to be rated Baa2 (stable) by Moody's and BBB (positive) by Standard & Poor's. The issuance attracted attention from over 200 investors.

The company has made significant strides in debt reduction, retiring approximately £1.6 billion of debt over the past 18 months, aiming to deleverage its balance sheet in the wake of the travel industry’s recovery post-pandemic. The proceeds from this bond issuance are earmarked for the repayment of existing debt maturing in the next 18 months.

Chief Financial Officer Kenton Jarvis expressed satisfaction with the bond issue, highlighting the over 4-fold oversubscription and competitive pricing as indicators of the market's confidence in easyJet's strategic direction.