By Paul A. Harris
Portland, Ore., Sept. 19 - Air Canada priced $992 million equivalent of senior secured notes in three tranches on Thursday, according to market sources.
A $400 million tranche of six-year senior first-lien notes (B2/B+) priced at par to yield 6¾%, at the tight end of the 6¾% to 7% yield talk.
A C$300 million tranche of six-year senior first-lien notes (B2/B+) priced at par to yield 7 5/8%, in the middle of the 7½% to 7¾% yield talk.
A $300 million tranche of 6.5-year senior second-lien notes (Caa2/CCC+) priced at par to yield 8¾%, at the tight end of the 8¾% to 9% yield talk.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. Inc. and TD Securities are the joint bookrunners for the dollar-denominated tranches.
TD Securities was the lead bookrunner in a syndicate comprised of the same banks, for the Canadian dollar-denominated tranche.
The Montreal-based issuer, Canada's largest airline, plans to use the all of 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.
The $400 million first-lien tranche was added to the transaction earlier in the week, while the bank loan was downsized by $400 million.
| Issuer: | Air Canada
|
| Amount: | $992 million equivalent
|
| Trade date: | Sept. 19
|
| Settlement date: | Sept. 26
|
| Marketing: | Roadshow
|
|
|
| Dollar-denominated first-lien notes
|
| Amount: | $400 million
|
| Maturity: | Six years
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. Inc., TD Securities
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Call protection: | Three years
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Price talk: | 6¾% to 7%
|
|
|
| Canadian dollar-denominated first-lien notes
|
| Amount: | C$300 million
|
| Maturity: | Six years
|
| Bookrunners: | TD Securities, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. Inc.
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7 5/8%
|
| Call protection: | Three years
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Price talk: | 7½% to 7¾%
|
|
|
| Second-lien notes
|
| Amount: | $300 million
|
| Maturity: | 6.5 years
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. Inc., TD Securities
|
| Coupon: | 8¾%
|
| Price: | Par
|
| Yield: | 8¾%
|
| Call protection: | Three years
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Price talk: | 8¾% to 9%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
