Air Canada has closed its previously announced private offering of three tranches of enhanced equipment trust certificates (EETC), in the aggregate face amount of US $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 market is an important development for us as it represents new 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.
Air Canada closes EETC
