Air Canada (AC, Montréal Trudeau) has announced a USD5.35 billion refinancing of its debt, which will include obtaining two senior secured credit facilities of an undisclosed amount.
The airline, in a statement, said it has syndicated two new senior credit facilities, but did not disclose the amount sought. It said it would review “multiple funding sources” when assessing the refinancing transactions. Closing of the credit facilities was expected in the second or third week of August 2021, subject to obtaining lender commitments, market conditions, and customary closing conditions.
The facilities include a secured US dollar term loan that matures in 2028. The proceeds of the term loan will help refinance the company's 4.75% senior secured notes due in 2023; 9% second lien notes due in 2024; and a loan agreement of October 6, 2016. It will also be used for working capital and other general corporate purposes of Air Canada and its subsidiaries.
In addition, the airline has syndicated a secured US dollar revolving credit facility which matures in 2025, to be used for working capital and other general corporate purposes.
JPMorgan Chase Bank, N.A., Citi, and TD Securities were acting as lead arrangers and active book-runners for the senior secured credit facilities, the airline said.
The company also obtained CAD5.879 billion Canadian dollar (USD4.611 billion) in liquidity in April 2021 through the Canadian government's Large Employer Emergency Financing Facility (LEEFF) programme. The amount comprised of fully repayable loans that Air Canada would only draw down as required. It also raised an additional CAD6.8 billion (USD5.3 billion) in liquidity from own resources to sustain itself through the pandemic.
