Air Canada Announces Public Offering of Shares and Convertible Senior Notes

INNO
  • Air Canada (TSX:AC) today announced that it has commenced a marketed public offering of Class A Variable Voting Shares and/or Class B Voting Shares of the Company for gross proceeds of approximately C$500 million and a concurrent marketed private placement of convertible senior unsecured notes for gross proceeds of approximately US$400 million.
  • The Share Offering will be priced in the context of the market with the price and other final terms to be determined at the time of entering into an underwriting agreement for the Share Offering.
  • The Convertible Notes will be senior unsecured obligations of the Company and will accrue interest payable semi-annually in arrears and will mature on July 1, 2025, unless earlier repurchased, redeemed or converted.
  • The Convertible Notes will be convertible into cash, Class A Variable Voting Shares and/or Class B Voting Shares of the Company or a combination thereof, at the Company’s election. The interest rate, initial conversion rate and other terms of the Convertible Notes will be determined at the time of pricing of the Convertible Notes Offering
  • The Company intends to use the net proceeds from the Offerings to supplement the Company’s working capital and other general corporate purposes. The net proceeds from the Offerings will serve to increase Air Canada’s cash position, thereby allowing for additional flexibility both from an operational standpoint and in the implementation of its planned mitigation and recovery measures in response to the COVD-19 pandemic.
  • TD Securities Inc., J.P. Morgan Securities Canada Inc. and Citigroup Global Markets Canada Inc. are acting as joint active book-running managers for the Share Offering and J.P. Morgan Securities LLC, TD Securities Inc. and Citigroup Global Markets Canada Inc. are acting as joint active book-running managers for the Convertible Notes Offering.

About Air Canada

Air Canada is Canada’s largest domestic and international airline. Canada’s flag carrier is among the 20 largest airlines in the world and in 2019 served over 51 million customers. Air Canada is a founding member of Star Alliance, the world’s most comprehensive air transportation network. Air Canada is the only international network carrier in North America to receive a Four-Star ranking according to independent U.K. research firm Skytrax, which also named Air Canada the 2019 Best Airline in North America.

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