Milbank LLP has advised Citibank as sole structuring agent, joint global coordinator and mandated lead arranger in connection with International Airlines Group’s (IAG) multi-borrower $1.755B Revolving Credit Facility with a syndicate of banks.
The total amount available under the facility is $1.755B and will be available for a period of three years plus two one-year extension periods at the discretion of the lenders. The UK headquartered airline holding company is to use the facility for general corporate purposes including adding cash to the balance sheet. The facility is available to Aer Lingus, British Airways and Iberia, all of whom have a separate borrower limit. 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 canceled its US dollar facility that was due to expire on June 23, 2021 and which had $786 million undrawn and available on December 31, 2020. In addition, approximately €400 million of facilities are due to expire undrawn by the end of March.
IAG continues to have strong liquidity with an estimated total as of March 31 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
The Milbank London team was led by James Cameron (Transportation & Space) and supported by associates Ben Andrews and Amy Bradley (all London).