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Air Canada announces pricing of second lien notes

29-Jul-2010 11:03 AM

Air Canada announced (27-Jul-2010) its private offering of senior secured first lien notes, priced on 27-Jul-2010, has been supplemented by a concurrent offering of senior secured second lien notes, which also priced on 27-Jul-2010. Air Canada has entered into purchase agreements with a syndicate of initial purchasers relating to USD600 million of 9.25% senior secured first lien notes due 2015 and CAD300 million of 10.125% senior secured first lien notes due 2015, and USD200 million of 12% senior secured second lien notes due 2016. Upon completion of the offerings, Air Canada intends to use the net proceeds for the repayment of all indebtedness under Air Canada's secured term credit facility entered into in Jul-2009 and the remaining net proceeds for general corporate purposes. Each of the offerings is expected to close on 03-Aug-2010. [more]