Air Canada completes refinancing transaction exceeding CA$7.1 billion

Air Canada has closed its previously announced private offering of CA$2.0 billion of 4.625% senior secured notes due 2029 and US$1.2 billion of 3.875% senior secured notes due 2026. Air Canada also closed its previously announced US$2.9 billion new senior secured credit facility, comprised of a US$2.3 billion new term loan B maturing in 2028 together with a new undrawn US$600 million revolving credit facility maturing in 2025.

Air Canada received aggregate gross proceeds of approximately CA$7.1 billion from the sale of the Notes and from the Senior Secured Credit Facilities. Air Canada applied the proceeds from the sale of the Canadian Dollar Notes, together with the proceeds from the Term Loan, to satisfy and discharge all of the company’s outstanding CA$200 million aggregate principal amount of its 4.75% senior secured notes due 2023 and redeem all of the Company’s outstanding CA$840 million aggregate principal amount of its 9.00% second lien notes due 2024, repay all of the company’s US$1,178 million of indebtedness outstanding under the loan agreement dated as of October 6, 2016, which is comprised of a syndicated secured US dollar term loan B facility and a syndicated secured US dollar revolving credit facility and satisfy applicable transaction costs, fees and expenses.

The balance of the proceeds is being retained for working capital and other general corporate purposes of Air Canada and its subsidiaries. The revolving facility is undrawn as of the date hereof, and any future borrowings thereunder are also intended to fund working capital and other general corporate purposes of Air Canada and its subsidiaries. (US$1.00 = CA$1.26 at time of publication.)

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