Easyjet set to raise up to €1.2bn from bond sale
Easyjet is set to raise €1 – €1.2bn from a seven-year bond sale taking place today, according to a memo seen by Reuters.
The issue comes within days of the UK laying out its roadmap for the return of international travel, which prompted a huge jump in ticket bookings for the carrier.
According to the memo, the sale has received initial investor demand of €4.8bn, meaning the carrier has cut the yield guidance from 2.375 per cent to 2.125 per cent.
The emergence of a potential end date for the restrictions on international travel – 17 May – has led to flurry of investor interest in airline stocks.
Since Monday’s announcement, Easyjet’s share price has risen 16.5 per cent, meaning it is now trading at its highest levels since the pandemic began.
Proceeds from the bond sale will go towards general corporate purposes and for refinancing debt, according to an investor announcement.
BNP Paribas, Morgan Stanley, and Santander are running the bond sale on Easyjet’s behalf.