Finnair moves forward with refinancing plan: four A350 sale-leaseback agreement closed for cash proceeds over USD 400m

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Along with Finnair’s efforts to emerge from the corona crisis, the company is continuing its refinancing plan and has finalized a sale-leaseback agreement for four of its Airbus A350s. In the deal, Finnair sold these planes – delivered between june 2017 and February 2019 – and rented them for his own exploitation. The duration of the operating lease is on average 12 years and the counterparties are GE Capital Aviation Services (“GECAS”) and Pacific Investment Management Company LLC (“PIMCO”) as donors; GECAS is the rental manager.

The agreement will not have a material impact on Finnair’s operating income for the third quarter of 2021; however, the immediate positive cash flow effect for Finnair is greater than 400 million US dollars. Finnair will use the cash to refinance existing debt and withdraw its unused revolving credit facility from 175 million euros.

“This is the largest aircraft financing transaction in our company’s history,” says Finnair CFO Mika Stirkkinen. “This is an important part of our refinancing plan, which we have diligently executed during the pandemic, and it helps us to further improve our capital structure.”

Finnair has ordered a total of 19 new A350-900 XWBs from Airbus, of which 16 have been delivered. The remaining three A350s are expected to be delivered in Q2 2022, Q4 2024 and Q1 2025.

The fleet operated and / or owned by Finnair is shown on the company’s website at https://www.finnair.com/gb/gb/flights/fleet and updated quarterly in the financial reports of the company.

FINNAIR SA

More information :

Finnair communications, 358 9 818 4020, [email protected]

Distribution:

NASDAQ OMX Helsinki

Main media

Finnair is a network airline, specializing in connecting passenger and freight traffic between Asia and Europe by the small north road. Sustainability is at the heart of everything we do – Finnair intends to reduce its net emissions by 50% by the end of 2025 compared to the 2019 benchmark and achieve carbon neutrality no later than by the end of 2045. Finnair is a member of the oneworld alliance. Finnair plc the shares are listed on the Nasdaq Helsinki scholarship.

(C) 2021 Electronic News Publishing, source ENP press wire


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