Leeds-based travel group Jet2 strengthens finances by sign a new £ 150million term loan.
And that launches an offering of approximately £ 387.4million of unsecured and unrated senior secured convertible bonds, which mature in 2026.
The group notes that it already has taken ‘decisive action’ over the past year, raising nearly £ 1bn in cash from a wide range of sources to mitigate the impacts of the pandemic, including £ 200million Bank of England’s Covid Corporate Finance Facility.
He asserts that its liquidity position is strong, with the group’s cash position at March 31, 2021 comprising total unaudited cash of £ 1,379 million and own cash (excluding anticipated customer deposits) of £ 1,062 million. (2020: £ 520million), an increase of 104% at the end of the previous year.
The company intends to resume flight operations on June 24, 2021.
In a business update today, the listed company states: “Given the continuing uncertainty in the near term, we remain encouraged by the volume of guest bookings to date for winter 2021/22 and summer 2022, for whom package holiday bookings show a significant mix. higher of the total.
“The offering aims to complement Jet2’s existing capital structure and takes advantage of the current funding environment through the issuance of convertible bonds.
“The proceeds from the convertible bond issuance will be used to further strengthen Jet2’s balance sheet and position the company for a strong recovery as foreclosure restrictions are lifted, thanks to fleet growth and renewal opportunities. fleet.
“In addition to the convertible bonds and the company’s existing revolving credit facility, Jet2 also signed a new £ 150million unsecured term loan maturing in September 2023 as additional liquidity to improve balance sheet capacity and flexibility.
“These combined transactions further enhance the ability of Jet2.com and Jet2holidays to take advantage of all takeover opportunities, to the benefit of all stakeholders, including shareholders. “