23-Feb-2021 4:19 AM
British Airways reaches two financing agreements, increases liquidity by GBP2.45bn
- British Airways received commitments for a five year Export Development Guarantee term loan of GBP2 billion underwritten by a syndicate of banks, partially guaranteed by UK Export Finance (UKEF). British Airways has now reached final agreement with UKEF and the lenders and expects to drawdown the facility before the end of Feb-2021.
- British Airways also reached agreement with the Trustee of New Airways Pension Scheme (NAPS) to defer GBP450 million of pension deficit contributions due between Oct-2020 and Sep-2021. Any such payments to NAPS will reduce the outstanding repayment balance and are capped at that level. The requirement to make such payments to NAPS ceases after deferred contributions have been repaid. A new Recovery Plan will be based on the triennial valuation as at 31-Mar-2021. If a new Recovery Plan has not been agreed by 30-Sep-2021, the default position is that British Airways will return to making payments of GBP37.5 million per month from Oct-2021.