GA_P advises IAG on $1.7bn financing

Gómez-Acebo & Pombo has advised International Airlines Group and the financing entities on its US$1,755 million financing

International Airlines Group (IAG) has announced that it has signed a Revolving Credit Facility with a syndicate of banks. The total amount available under the facility is $1,755 million and will be available for a period of three years plus two one-year extension periods at the discretion of the lenders.

The facility is available to Aer Lingus, British Airways and Iberia, each of whom has a separate borrower limit within the overall facility. Amounts drawn would be secured against eligible unencumbered aircraft assets and take-off and landing rights at both London Heathrow and London Gatwick airports. Simultaneous with entering into this new Revolving Credit Facility, British Airways has cancelled its US dollar facility that was due to expire on 23 June 2021 and which had $786 million undrawn and available on 31 December 2020. In addition, approximately €400 million of facilities are due to expire undrawn by the end of March.

As a net result, the Group’s total facilities have increased by nearly €400 million and their weighted average availability period has extended by at least 1.5 years compared to previously.

IAG continues to have strong liquidity with an estimated total as of 31 March of €10.3 billion, comprised of €7.8 billion cash, cash equivalents and interest-bearing deposits, €1.7 billion undrawn general facilities, including today’s announced facility undrawn, and €0.8 billion committed aircraft financing facilities.

Gómez-Acebo & Pombo´s team was led by partner Fernando Herrero (pictured left), together with senior associate José Francisco Canalejas (pictured centre) and associate Marina Carreño (pictured right), all from the Banking & Finance area.