Air Canada has closed two additional financing transactions for net proceeds of CA$1.23 billion. Since the start of the COVID-19 pandemic in the first quarter of 2020, Air Canada has raised CA$5.5 billion of liquidity.
On June 22, 2020, Air Canada completed a private offering of CA$840 million aggregate principal amount of 9.00% Second Lien Secured Notes due 2024 (the 2024 Notes), which were sold at 98% of par. The 2024 Notes are secured obligations of Air Canada, secured on a second lien basis by certain real estate interests, ground service equipment, certain airport slots and gate leaseholds, and certain routes and the airport slots and gate leaseholds utilized in connection with those routes.
Earlier in June, Air Canada completed a private offering of one tranche of Class C EETCs with a combined aggregate face amount of approximately US$315 million, which were sold at 95.002% of par. The Class C tranche ranks junior to the previously issued Series 2015-1, Series 2015-2, and Series 2017-1 EETCs, and is secured by liens on the 27 aircraft financed under the Series 2015-1, Series 2015-2, and Series 2017-1 EETCs. The Class C EETCs have an interest rate of 10.500% per annum, and a final expected distribution date of July 15, 2026. (US$1.00 = CA$1.35 at time of publication.)
