EasyJet’s cost of cash sinks after Johnson’s summer travel plan
EasyJet saw big demand for its first bond sale since 2019, underscoring the strength of the reopening trade even for the battered tourism industry. The discount airline’s E1.2b sale of seven-year notes was four times subscribed on Wednesday, according to a person familiar with the matter. The enthusiasm for the deal drove down borrowing costs, with yields falling as much as 37.5 basis points, the person said. “Quite a blowout deal,” according to Daniel Ender, a fixed-income strategist at ABN Amro Bank NV. “Much stronger demand than any airliner so far,” he said. With UK PM Boris Johnson planning to restart international travel in mid-May, investors are bracing for a wave of pent-up demand from holiday-starved Britons. Airline stocks are surging and companies are using the opportunity to lock in low borrowing costs.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2021-02-25/unaligned/easyjet2019s-cost-of-cash-sinks-after-johnson2019s-summer-travel-plan
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EasyJet’s cost of cash sinks after Johnson’s summer travel plan
EasyJet saw big demand for its first bond sale since 2019, underscoring the strength of the reopening trade even for the battered tourism industry. The discount airline’s E1.2b sale of seven-year notes was four times subscribed on Wednesday, according to a person familiar with the matter. The enthusiasm for the deal drove down borrowing costs, with yields falling as much as 37.5 basis points, the person said. “Quite a blowout deal,” according to Daniel Ender, a fixed-income strategist at ABN Amro Bank NV. “Much stronger demand than any airliner so far,” he said. With UK PM Boris Johnson planning to restart international travel in mid-May, investors are bracing for a wave of pent-up demand from holiday-starved Britons. Airline stocks are surging and companies are using the opportunity to lock in low borrowing costs.<br/>
