Last checked at 
(Alliance News) - easyJet PLC on Friday said it has signed a sale and leaseback agreement for six Airbus A320neo aircraft for cash proceeds of USD255 million.
The aircraft will be sold to leasing company SMBC Aviation Capital and leased back for terms of between 110 and 122 months, the low-cost airline added. The lease obligations is expected to total GBP155 million.
The net book value of the aircraft, which vary in age from six months to two years of age, was around GBP141 million as at March 31.
Proceeds, which make up part of the expected GBP500 million to GBP650 million in funding from sale and leasebacks announced by the company in May, will be used to maximise liquidity and further strengthen easyJet's financial position.
"easyJet and SMBC Aviation Capital have also identified other unencumbered aircraft in the easyJet fleet and, if easyJet decide to sell these aircraft over the next 18 months, SMBC Aviation Capital will be our preferred partner for the transaction under financial metrics equivalent to those already established in the transaction announced today," easyJet said.
The Luton-based carrier on Thursday had raised GBP419 million through a placing of 59.5 million shares at a price of 703 pence per share, as part its plan to bolster its balance sheet.
easyJet estimated a cash balance of over GBP3 billion following completion of share placing and aircraft sale & leaseback deals.
On Wednesday, the company easyJet had reported a widened pretax loss of GBP353 million for the six months to the end of March, compared to GBP272 million the year before, on revenue that grew by 1.6% to GBP2.38 billion.
Shares in easyJet were up 3.8% at 695.40 pence each in London on Friday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
