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EasyJet To Sell And Leaseback Six A320neo Aircraft In $255 Mln Deal - Quick Facts

easyJet Plc (ESYJY.PK,EZJ.L) announced Friday that it has agreed the sale and leaseback of six A320neo aircraft for aggregate cash sales proceeds of $255 million or about 206 million pounds.

The aircraft will be sold to SMBC Aviation Capital, an aircraft leasing company, and leased back for terms of between 110 and 122 months. The lease obligations generated amount to a total of approximately 155 million pounds.

The company said the proceeds of the transaction make up part of the anticipated 500 million pounds to 650 million pounds in funding from sale and leasebacks, and will be used to maximise liquidity and further strengthen its financial position.

The net book value of the aircraft, which vary in age from six months to two years of age, was approximately 141 million pounds as of March 31.

easyJet executed the deal in two parts, with the initial proceeds of $126 million or around 102 million pounds relating to three A320NEO aircraft included in the reported 301 million pounds SLB proceeds outlined in its first-half results announced Wednesday. The remaining $129 million or approximately 104 million pounds will form part of the anticipated remaining proceeds from SLB transactions.

Further, easyJet said the company and SMBC Aviation Capital have also identified other unencumbered aircraft in the easyJet fleet. If easyJet decide to sell these aircraft over the next 18 months, SMBC Aviation Capital will be the preferred partner for the deal under similar financial metrics.

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