Virgin Atlantic has completed financing transactions relating to two Boeing 787 aircraft in partnership with Griffin Global Asset Management and Bain Capital Credit.
The carrier said the sale and leaseback deals would further strengthen its balance sheet. Virgin Atlantic completed a privately funded, solvent recapitalisation in September last year as it sought to survive a virtual shutdown of travel following the Covid-19 pandemic.
This latest financing opportunity, a first for Griffin Global Asset Management, allows the airline to pay down debt and improve its cash position as it enters 2021. With the mass roll out of effective vaccines on the horizon, the implementation of testing regimes and a reduction in UK quarantine policy, customer demand for travel in 2021 has been gradually returning, the airline stated.
Meanwhile, on the back of a record 2020, Virgin Atlantic Cargo continues to keep global supply chains running by transporting vital medical supplies, ensuring the airline plays a central role in supporting the effort to save lives.
Oliver Byers, chief financial officer, Virgin Atlantic, said, “Since the beginning of the crisis, we have taken decisive action to reduce our costs, preserve cash and protect as many jobs as possible. As provided for in the recent privately funded solvent recapitalisation of the airline, we have continued to explore additional financing opportunities to strengthen our balance sheet into the new year.”
He continued, “We are proud to be partnering with Griffin on this financing opportunity regarding two of our Boeing 787-900s. Their flexibility and speed have been particularly impressive and we welcome this show of confidence from our new partners. This deal will allow Virgin Atlantic to further bolster our cash position and we are confident that we will emerge a sustainably profitable airline, with a healthy balance sheet.”
Photo Credit: Virgin Atlantic