- Pays down nearly U.S.$1.1
billion of senior secured indebtedness
- Refinances remaining outstanding amount and strengthens
revolving credit facility.
MONTREAL, March 21,
2024 /CNW/ - Air Canada announced today that it has
completed the closing of U.S.$2.15
billion senior secured credit facilities, comprised of (i) a
U.S.$1.175 billion term loan B
maturing in 2031 (the "Term Loan") and (ii) a
U.S.$975 million revolving credit
facility maturing in 2029 (the "Revolving Facility" and,
together with the "Term Loan", the "Senior Credit
Facilities"). The aggregate gross proceeds of the Term Loan,
together with cash from Air Canada balance sheet of
U.S.$1.09 billion, are being applied
to refinance all of Air Canada's indebtedness outstanding under its
existing U.S.$2.265 billion term loan
B maturing in 2028. The Revolving Facility, which is the result of
an upsize and extension of Air Canada's existing U.S.$600 million revolving credit facility previously
maturing in 2025, is undrawn as of the date hereof, and any future
borrowings thereunder would be intended to fund working capital and
other general corporate purposes of Air Canada and its
subsidiaries. Concurrently with the closing of the Senior Credit
Facilities, Air Canada also terminated its undrawn C$200 million revolving credit facility maturing
in 2026.
Key highlights of the closing of Senior Credit Facilities
include:
- significantly reducing Air Canada's outstanding senior secured
indebtedness by U.S.$1.09
billion;
- reducing Air Canada's interest rate on its term loan B
borrowings, to 250 basis points over SOFR (with no SOFR floor, no
spread adjustment); and
- increasing available undrawn amounts under the Revolving
Facility by U.S.$375 million.
Air Canada's obligations under
the Senior Credit Facilities are senior secured obligations of Air
Canada, secured on a first-lien basis, subject to certain permitted
liens and exclusions, by certain collateral comprised of
substantially all of Air Canada's international routes, airport
slots and gate leaseholds.
About Air Canada
Air Canada is Canada's largest airline, the country's flag
carrier and a founding member of Star
Alliance, the world's most comprehensive air transportation
network. Air Canada provides
scheduled service directly to more than 180 airports in
Canada, the United States and Internationally on six
continents. It holds a Four-Star ranking from Skytrax. Air
Canada's Aeroplan program is
Canada's premier travel loyalty
program, where members can earn or redeem points on the world's
largest airline partner network of 45 airlines, plus through an
extensive range of merchandise, hotel and car rental partners.
Through Air Canada Vacations, it offers more travel choices than
any other Canadian tour operator to hundreds of destinations
worldwide, with a wide selection of hotels, flights, cruises, day
tours, and car rentals. Its freight division, Air Canada Cargo,
provides air freight lift and connectivity to hundreds of
destinations across six continents using Air Canada's passenger and
freighter aircraft. Air Canada
aims to achieve an ambitious net zero emissions goal from all
global operations by 2050. Air Canada shares are publicly traded on the TSX
in Canada and the OTCQX in the
US.
CAUTION REGARDING FORWARD-LOOKING
INFORMATION
This news release includes forward-looking statements within the
meaning of applicable securities laws. Forward-looking statements
relate to analyses and other information that are based on
forecasts of future results and estimates of amounts not yet
determinable. These statements may involve, but are not
limited to, comments regarding expectations, goals or future
actions, including in relation to the Senior Credit Facilities
described in this news release.
Forward-looking statements, by their nature, are based on
assumptions, including those described herein, are subject to
important risks and uncertainties and cannot be relied upon due to,
amongst other things, changing external events and general
uncertainties of the business. Actual results may differ
materially from results indicated in forward-looking statements due
to a number of factors, including without limitation, those
identified in section 18 "Risk Factors" of Air Canada's MD&A
for the year ended December 31,
2023.
The forward-looking statements contained in this news release
represent Air Canada's expectations as of the date of this news
release (or as of the date they are otherwise stated to be made),
and are subject to change after such date. However, Air Canada
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required under applicable
securities regulations.
Internet: aircanada.com/media-
Read Our Annual Report Here
Sign up for Air Canada news: aircanada.com
Media Resources:
Photos
Videos
B-Roll
Articles
SOURCE Air Canada