By Cristal Cody
Tupelo, Miss., Sept. 9 – Air Canada priced $552,625,000 of pass-through enhanced equipment trust certificates in two tranches on Wednesday, according to a market source.
The company sold $452,625,000 of class A certificates (A/A-) at par to yield 5.25%.
Initial price talk was in the 5.75% to 5.875% area.
The class A certificates have a final expected distribution date of April 1, 2029.
Air Canada priced $100 million of series class B certificates (BBB-/BBB-) at par to yield 9%.
Price talk was at the 9.25% to 9.375% area.
The certificates have a final expected distribution date of Oct. 1, 2025.
Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and TD Securities (USA) LLC were the bookrunners.
Montreal-based Air Canada is Canada’s largest domestic and international airline.
| Issuer: | Air Canada
|
| Amount: | $552,625,000
|
| Description: | Series 2020-2 pass-through enhanced equipment trust certificates
|
| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and TD Securities (USA) LLC
|
| Trade date: | Sept. 9
|
|
|
| Class A notes
|
| Amount: | $452,625,000
|
| Maturity: | April 1, 2029
|
| Coupon: | 5.25%
|
| Price: | Par
|
| Yield: | 5.25%
|
| Ratings: | S&P: A
|
| Fitch: A-
|
| Price guidance: | 5.75%-5.875% area
|
|
|
| Class B notes
|
| Amount: | $100 million
|
| Maturity: | Oct. 1, 2025
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Ratings: | S&P: BBB-
|
| Fitch: BBB-
|
| Price guidance: | 9.25%-9.375% area
|
|
|
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