Air Canada Completes Closing of U.S.$2.15 Billion Senior Secured Credit Facilities
Retrieved on:
Thursday, March 21, 2024
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").
Key Points:
- 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").
- 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.