You might also like:
Air Canada has closed two additional financing transactions for net proceeds of $1.23 billion.
Since the start of the Covid-19 pandemic in the first quarter of the year, the flag-carrier has raised $5.5 billion of liquidity to offset the costs of a collapse in demand for travel.
On June 22nd Air Canada completed a private offering of $840 million aggregate principal amount of nine per cent second lien secured notes due 2024, which were sold at 98 per cent of par.
The notes are secured obligations of Air Canada, secured on a second lien basis by certain real estate interests, ground service equipment, certain airport slots and gate leaseholds, and certain routes and the airport slots and gate leaseholds utilized in connection with those routes.
Earlier in June, Air Canada completed a private offering of one tranche of Class C EETCs with a combined aggregate face amount of approximately US$315 million, which were sold at 95 per cent of par.
The tranche ranks junior to the previously issued Series 2015-1, Series 2015-2, and Series 2017-1 EETCs, and is secured by liens on the 27 aircraft financed under the Series 2015-1, Series 2015-2, and Series 2017-1 EETCs.
The Class C EETCs have an interest rate of 10.5 per cent per annum, and a final expected distribution date of July 2026.
“The fact Air Canada was able to add $1.23 billion to its liquidity with these last two transactions without utilising any of its previously disclosed unencumbered assets leaves the airline in an excellent position to access additional funds should the need arise.
“Complementing these efforts have been ongoing initiatives to reduce cash burn through such measures as workforce reductions, a $1.1 billion cost transformation program and capacity and network rationalisation,” said Pierre Houle, managing director and treasurer of Air Canada.
Source: breakingtravelnews.com
