11:37:26 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Air Canada
Symbol AC
Shares Issued 271,068,997
Close 2017-06-01 C$ 17.77
Market Cap C$ 4,816,896,077
Recent Sedar Documents

Air Canada reprices $1.1-billion (U.S.) credit facility

2017-06-02 11:32 ET - News Release

Mr. Michael Rousseau reports

AIR CANADA REPRICES U.S.$1.1 BILLION CREDIT FACILITY

Air Canada has completed the repricing of its $1.1-billion (U.S.) senior secured credit facility, reducing the interest rate by 50 basis points, to an interest rate of 225 basis points over LIBOR (London interbank offered rate) (subject to a LIBOR floor of 75 basis points). The credit facility comprises an $800-million (U.S.) term loan maturing in 2023 and a $300-million (U.S.) revolving credit facility (undrawn) expiring in 2021.

The completion of the repricing transaction follows last week's announcement by Moody's Investors Service Inc. of its upgrade of Air Canada's corporate family rating to Ba3 from B1. Air Canada is currently assigned a BB-minus (or equivalent) corporate rating from Moody's, Standard & Poor's, and Fitch rating agencies.

"This repricing transaction, together with Moody's recent upgrade of Air Canada's corporate family rating to Ba3, reflects Air Canada's progress and focus on improving our balance sheet. We expect to realize annualized interest expense savings of more than $5-million over the remaining life of the term loan," concluded Michael Rousseau, executive vice-president and chief financial officer.

Canadian-dollar figures identified in this news release are based on an exchange rate of $1 equal to 74.07 U.S. cents. Air Canada's obligations under the credit facility are senior secured obligations of Air Canada, secured on a first-lien basis, subject to certain permitted liens and exclusions, by certain real estate interests, ground service equipment, certain airport slots and gate leaseholds, certain Pacific routes, as well as the airport slots and gate leaseholds utilized in connection with these Pacific routes.

About Air Canada

Air Canada is Canada's largest domestic and international airline serving more than 200 airports on six continents. Canada's flag carrier is among the 20 largest airlines in the world and, in 2016, served close to 45 million customers. Air Canada provides scheduled passenger service directly to 63 airports in Canada, 57 in the United States, and 93 in Europe, the Middle East, Africa, Asia, Australia, the Caribbean, Mexico, Central America and South America.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.