Air Canada Announces Closing of Private Offering of Enhanced Equipment Trust
MONTREAL, May 9, 2013 /CNW Telbec/ - Air Canada announced today the closing of
its previously announced private offering of three tranches of enhanced
equipment trust certificates, in the aggregate face amount of U.S.
$714,534,000. The private offering is comprised of Class A certificates, Class
B certificates and Class C certificates. The Class A certificates have an
interest rate of 4.125% per annum and a final expected distribution date of
May 15, 2025. The Class B certificates have an interest rate of 5.375% per
annum and a final expected distribution date of May 15, 2021. The Class C
certificates have an interest rate of 6.625% per annum and a final expected
distribution date of May 15, 2018.
"Our EETC offering was very well received by the institutional investors to
whom it was directed, with the Class A tranche rated "Investment Grade" by the
rating agencies," said Calin Rovinescu, President and Chief Executive Officer.
"Our participation in this marketis an important development for us as it
representsnew opportunities for future aircraft financings at
internationally competitive levels. We are pleased with the offering's
reception which reflects positively on Air Canada and the continued progress
being made to achieve a sustainable transformation."
As previously announced, each class of certificates represents an interest in
its respective pass through trust. The trusts will use the proceeds from the
offering to acquire equipment notes that will be issued to finance the
acquisition of five new Boeing 777-300ER aircraft, which will be added to Air
Canada's fleet and which are currently scheduled for delivery during the
period from June 2013 to February 2014.
The equipment notes will be secured by the five Boeing 777-300ER aircraft
being acquired, and the security interest in each of the aircraft will benefit
from the protections of the Cape Town Convention on International Interests in
Mobile Equipment and the Protocol thereto on Matters Specific to Aircraft
Equipment, as enacted in Canada.
The certificates were offered and sold only to qualified institutional buyers
in reliance on Rule 144A under the Securities Act of 1933, as amended (the
"Securities Act"), and to certain non-U.S. persons in transactions outside the
United States in reliance on Regulation S under the Securities Act. In Canada,
the certificates were offered and sold on a private placement basis to
accredited investors in certain provinces.
The certificates have not been and will not be registered under the Securities
Act or the securities laws of any other jurisdiction and may not be offered or
sold in the United States absent registration or an applicable exemption from
the registration requirements of the Securities Act and state securities laws.
The certificates have not been and will not be qualified for sale to the
public under applicable Canadian securities laws and, accordingly, any offer
and sale of the certificates in Canada will be made on a basis that is exempt
from the prospectus requirement of such securities laws. This press release
shall not constitute an offer to sell the certificates or the solicitation of
an offer to buy the certificates, nor shall there be any sale of the
certificates in any state or jurisdiction where such offer, solicitation or
sale is not permitted.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Air Canada's public communications may include forward-looking statements
within the meaning of applicable securities laws. Forward-looking statements,
by their nature, are based on assumptions and are subject to important risks
and uncertainties. Forward-looking statements cannot be relied upon due to,
amongst other things, changing external events and general uncertainties of
the business. Actual results may differ materially from results indicated in
forward-looking statements due to a number of factors, including without
limitation, industry, market, credit and economic conditions, the ability to
reduce operating costs and secure financing, pension issues, energy prices,
employee and labour relations, currency exchange and interest rates,
competition, war, terrorist acts, epidemic diseases, environmental factors
(including weather systems and other natural phenomena, and factors arising
from man-made sources), insurance issues and costs, changes in demand due to
the seasonal nature of the business, supply issues, changes in laws,
regulatory developments or proceedings, pending and future litigation and
actions by third parties as well as the factors identified throughout Air
Canada's public disclosure file available at www.sedar.com. Any
forward-looking statements contained in this news release represent Air
Canada's expectations as of the date of this news release and are subject to
change after such date. However, Air Canada disclaims any intention or
obligation to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise, except as required
under applicable securities regulations.
Isabelle Arthur (Montréal)514 422-5788 Peter Fitzpatrick (Toronto)416
263-5576 Angela Mah (Vancouver)604 270-5741
SOURCE: Air Canada
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