Air Canada has priced a private offering of senior secured notes and received commitments from lenders for a new credit facility in connection with its CAD1.25 billion refinancing transaction, the company said.
As part of its refinancing transaction, Air Canada said it entered into a purchase agreement with a syndicate of initial purchasers relating to a private offering of CAD200 million aggregate principal amount of 4.75 percent senior secured first lien notes due 2023. Air Canada also received loan commitments for a USD800 million term loan, maturing in 2023, together with a new, undrawn USD300 million revolving credit facility expiring in 2021.
Air Canada said it intends to use the net proceeds from the sale of the 2016 Senior Notes, together with borrowings under the term loan under the 2016 credit facility, and approximately CAD444 million of cash on hand, to pay the redemption price for all of Air Canada´s outstanding senior secured notes and to repay Air Canada´s outstanding USD300 million term loan.
Air Canada is a Canadian domestic and international airline serving more than 200 airports on six continents. In 2015, the airline served more than 41 million customers.