Air Canada reprices $1.1 billion facility

Air Canada reprices $1.1 billion facility

Air Canada has repriced its $1.1 billion senior secured credit facility.

The repricing has reduced the loans interest rate to 225 basis points over LIBOR, dropping 50 points. The repricing follows Moody’s upgrade of the airlines family rating from B1 to Ba3.

The facility will be offered in two tranches, an $800 million term loan set to mature in 2023 and one $300 million revolving facility, maturing in 2021.

Michael Rousseau, executive vice-president and CFO, Air Canada said: “This repricing transaction, together with Moody’s recent upgrade of Air Canada’s corporate family rating to Ba3, reflects Air Canada’s progress and focus on improving our balance sheet.

“We expect to realise annualised interest expense savings of more than C$5 million over the remaining life of the term loan.”

Issuer: Air Canada
Amount: $1.1 billion
Type: Senior secured credit facility
LIBOR: 225 basis points
Tranches: Two

First tranche amount: $800 million
Maturity: 2023

Second tranche amount: £300 million
Maturity: 2021


Alex Baldwin
By Alex Baldwin June 6, 2017 10:23