Air Canada to start roadshow Monday for $300 million 6.5-year notes

By Paul A. Harris

Portland, Ore., Sept. 6 - Air Canada plans to start a roadshow on Monday for a $300 million offering of 6.5-year senior second-lien notes (expected ratings Caa2/CCC+), according to a market source.

The deal is set to price early in the Sept. 16 week.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and TD Securities are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable in three years at par plus 75% of the coupon.

The issuer, Canada's largest airline, plans to use the proceeds to fund the tender offer for $600 million of its 9¼% senior notes due 2015, C$300 million 10 1/8% senior secured notes due 2015 and any and all of the 12% senior secured second-lien notes due 2016, with any remaining proceeds for general corporate purposes.

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