Air Europa advances repayment of €475 million loan to Sepi following agreement with Turkish Airlines

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Air Europa advances repayment of €475 million loan to Sepi following agreement with Turkish Airlines

Air Europa will repay early the €475 million loan granted by the Spanish State-owned Industrial Holdings Corporation (Sepi) thanks to an agreement reached with Turkish Airlines, which invested €300 million in the airline. The transaction was structured through a convertible bond, which will be exchanged for a stake in Air Europa of approximately 26% once all regulatory requirements are met.

With this capital injection and its own resources, the airline is repaying its ordinary and participating loans with SEPI, as well as the accrued interest, totaling nearly €500 million, bringing the scheduled maturity date forward by one year. After repaying, last May, the €141 million and related interest on the bank loan received in May 2020, with the participation and guarantee of the Official Credit Institution (ICO), Air Europa has now completed “an important step in the process of reducing financial debt undertaken in recent years, confirming the correctness of its management strategy,” the airline explained in a statement.