Friday, March 22, 2024
Air Canada announced the completion of a major financial milestone, securing U.S.$2.15 billion in senior secured credit facilities. This financial package is divided into two main parts: a U.S.$1.175 billion term loan B set to mature in 2031, and a U.S.$975 million revolving credit facility that will mature in 2029. The combined gross proceeds from the term loan, alongside U.S.$1.09 billion from Air Canada’s own funds, will be used to refinance the airline’s existing U.S.$2.265 billion term loan B due in 2028. Additionally, the new revolving credit facility represents an expansion and extension of a previous U.S.$600 million facility that was set to expire in 2025. This facility remains unused as of now, with any future draws intended to support Air Canada’s working capital and other corporate needs. Alongside this, Air Canada has also closed a C$200 million revolving credit facility that was undrawn and set to mature in 2026.
Key benefits from this financial restructuring include a substantial reduction in Air Canada’s senior secured debt by U.S.$1.09 billion, a decrease in the interest rate for the term loan B borrowings to 250 basis points over SOFR (without a SOFR floor or spread adjustment), and an increase in the available undrawn amount under the revolving credit facility by U.S.$375 million. The obligations under these new senior credit facilities are secured by a first lien on a significant portion of Air Canada’s assets, including almost all of its international routes, airport slots, and gate leaseholds, while still allowing for certain exceptions and permitted liens.
Saturday, April 27, 2024
Saturday, April 27, 2024
Sunday, April 28, 2024
Sunday, April 28, 2024
