Air Canada out with private offering of senior secured notes

Air Canada has launched a private offering of two series of senior secured notes worth US$2.75 billion in total, consisting of US dollar denominated senior secured notes due 2026 and Canadian dollar denominated senior secured notes due 2029. The notes will be senior secured obligations of the company, and secured on a first-lien basis by certain collateral comprised of substantially all of the company’s international routes, airport slots and gate leaseholds. The senior secured notes offering is being made in connection with the refinancing transactions where Air Canada is seeking total gross proceeds of approximately US$5.35 billion, which will include