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Jul 20, 2010 | 8:05 am

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tcook052

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Air Canada plans $900-million private offering to repay credit facility

http://www.financialpost.com/news/Ca...334/story.html

Air Canada said Tuesday it plans to issue $900-million in senior secure notes through a private offering in order to repay the credit facility it received from a number of players, including the federal government, last summer while it was struggling to avoid a bankruptcy filing.

The airline said the notes would be due 2015 and be issued in a series denominated in both U.S. and Canadian dollars, subject to market and other conditions.

“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 July 2009 and would use any remaining net proceeds for general corporate purposes,” the company said in a statement.

The notes will be guaranteed by certain unnamed Air Canada subsidiaries, some of its account receivables, certain real estate, spare parts, engines, ground equipment, landing slots and gates, and all of Air Canada Pacific routes, slots and gates, the company said.

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