Air Canada Sells Record Loonie Junk Bond in Boosted Debt Deal
- Carrier increased the refinancing deal to $5.7 billion
- Company issued largest high-yield bond in Canadian dollars
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Air Canada boosted the size of its refinancing after taking advantage of strong demand for the biggest high-yield corporate bond in Canadian dollars and upsizing the loan portion.
The aggregate loan and bond transactions will likely total $5.7 billion, up from $5.35 billion initially planned last week, according to people familiar with the matter. Canada’s biggest airline increased the secured term loan to $2.3 billion, up from $2 billion, and it wrapped up the sale of C$2 billion ($1.59 billion) of eight-year bonds and another $1.2 billion of U.S. dollar denominated securities.