An anonymous director reports

AIR CANADA COMPLETES CLOSING OF U.S.$2.15 BILLION SENIOR SECURED CREDIT FACILITIES

Air Canada has completed the closing of $2.15-billion (U.S.) senior secured credit facilities, comprising: (i) a $1,175-million (U.S.) term loan B maturing in 2031; and (ii) a $975-million (U.S.) revolving credit facility maturing in 2029. The aggregate gross proceeds of the term loan, together with cash from Air Canada balance sheet of $1.09-billion (U.S.), are being applied to refinance all of Air Canada's indebtedness outstanding under its existing $2,265-million term loan B maturing in 2028. The revolving facility, which is the result of an upsize and extension of Air Canada's existing $600-million (U.S.) revolving credit facility previously maturing in 2025, is undrawn as of the date hereof, and any future borrowings thereunder would be intended to finance 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 $200-million (U.S.) 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 $1.09-billion (U.S.);
• Reducing Air Canada's interest rate on its term loan B borrowings to 250 basis points over SOFR (secured overnight financing rate) (with no SOFR floor and no spread adjustment);
• Increasing available undrawn amounts under the revolving facility by $375-million (U.S.).

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 comprising 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 Toronto Stock Exchange in Canada and the OTCQX in the United States.

We seek Safe Harbor.