Air Canada is reported to be progressing well with its plan to issue a EETC to finance four
With average EETC coupons falling significantly on the back of extremely strong capital markets, Air Canada stands to save at least 150bps by opting for a EETC transaction. Air Canada’s debt is rated B- by Standard & Poor’s, and its senior notes are rated B2 by Moody’s Investors Service, five levels below investment grade. That, added to the value of the collateral, Air Canada’s EETC is expected to price tightly.
However, on the back of its reported loss for the first quarter, Air Canada’s Class B stock fell 13% to C$2.62 in trading yesterday, the largest one-day decrease since October 2009.
Air Canada EETC progressing
