Joe Breitfeller
Mar 23, 20211 min
The International Consolidated Airlines Group (IAG) has signed a three-year $1.755 billion secured revolving credit facility with a syndicate of banks. The RCF will be available for three years, with the option of two one-year extensions at the lenders’ discretion.
Today (March 23, 2021), the International Consolidated Airlines Group (IAG) has announced the signing of a three $1.755 billion year revolving credit facility (RCF). The facility will be available for a period of three years, with an option for two one-year extensions at the discretion of the lenders. The RCF will be available to Aer Lingus, British Airways and Iberia, each company with their own borrower limit. Funds drawn from the credit line will be secured by unencumbered aircraft as well as takeoff and landing slots at London-Heathrow and London-Gatwick.
In conjunction with the new RCF, British Airways has canceled their US dollar facility, which was set to expire on June 23, 2021, which had $786 million in undrawn available credit at December 31, 2020. Additionally, IAG has around €400 million of untapped credit facilities which are set to expire at the end of March. The net result of the new RCF increases the Group’s available credit by nearly €400 million, and extends their weighted average availability by at least 1.5 years.
The Group continues to maintain a strong liquidity position with an estimated €10.3 billion available at March 31, 2021, including €7.8 billion in cash and equivalents, €1.7 billion in undrawn general facilities and €0.8 billion in committed aircraft financing.
Source: IAG