Air Canada pulls C$300 million offering of senior notes due 2019

By Cristal Cody

Tupelo, Miss., June 27 - Air Canada deferred its C$300 million offering of senior secured notes due 2019 (B2/B/) on Thursday, an informed source said.

"We're not sure if and when they'll come back," the source said.

The company also pulled its U.S. dollar-denominated $1 billion term loan B due to market volatility.

As reported on Monday, the bond deal was not completely set due to market conditions, but meetings were scheduled on Wednesday to market the notes.

Citigroup Global Markets Inc. was the selected lead manager.

The notes would have shared in the same collateral pool as the $1 billion six-year senior secured term loan and $100 million revolver.

The Saint-Laurent, Quebec-based full-service airline had planned to use the proceeds in combination with the term loan B to repay its 9¼% senior secured notes due 2015, 10 1/8% senior secured notes due 2015 and 12% senior second-lien notes due 2016 and for general corporate purposes.

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