Air Canada announced today that it has priced its previously announced private offering of senior unsecured notes. The offering was upsized from the previously announced US$300 million aggregate principal amount as Air Canada entered into a purchase agreement with a syndicate of initial purchasers relating to US$400 million of 7.75% senior unsecured notes due 2021 (the „Notes”). The Notes will be sold at par and will provide for interest payable semi-annually. The Notes will be senior unsecured obligations of Air Canada, and will be guaranteed on a senior unsecured basis by one of Air Canada’s subsidiaries.
The offering of the Notes is expected to close on April 15, 2014, subject to customary closing conditions. Air Canada intends to use the net proceeds from the sale of the Notes for general corporate purposes.
The Notes will not be registered under the U.S. Securities Act of 1933, as amended (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 Notes will be offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act, and to persons other than U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act.
The Notes will not be qualified for sale to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the Notes 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 Notes or the solicitation of an offer to buy the Notes, nor will there be any sale of the Notes in any state or jurisdiction where such offer, solicitation or sale is not permitted. The Notes are being offered only through a preliminary and final offering memorandum and this press release is not intended to serve as the basis for any investment decision.
Source / Author: Air Canada