http://www.newswire.ca/en/releases/a.../27/c6936.html
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
- US$600 million of 9.25% senior secured first lien notes due 2015
- C$300 million of 10.125% senior secured first lien notes due 2015
- US$200 million of 12% senior secured second lien notes due 2016
MONTREAL, July 27 /CNW Telbec/ - Air Canada announced today that its previously announced private offering of senior secured first lien notes, which priced today, has been supplemented by a concurrent offering of senior secured second lien notes, which also priced today. Air Canada has entered into purchase agreements with a syndicate of initial purchasers relating to (i) US$600 million of 9.25% senior secured first lien notes due 2015 and C$300 million of 10.125% senior secured first lien notes due 2015 (collectively, the "First Lien Notes"), and (ii) US$200 million of 12% senior secured second lien notes due 2016 (the "Second Lien Notes"). 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 July 2009 and the remaining net proceeds for general corporate purposes.
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It does appear that the rates are lower than the 12.75% quoted by ChrisA330 but thought they would have been able to do quite a bit better than the rates indicated in the press release. Although a 3.5% improvement on $600 million does result in $21 million in annual interest savings.