By Paul A. Harris
Portland, Ore., April 10 - Air Canada priced an upsized $400 million issue of seven-year senior notes (Caa2/B-/B-) at par to yield 7¾% on Thursday, according to a market source.
The deal from Canada's largest airline was increased from $300 million.
The yield printed at the tight end of the 7¾% to 8% yield talk.
J.P. Morgan Securities LLC, Citigroup Global Markets, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. were the joint bookrunners.
The Montreal-based air carrier plans to use the proceeds for general corporate purposes.
| Issuer: | Air Canada
|
| Amount: | $400 million, increased from $300 million
|
| Maturity: | April 15, 2021
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co.
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 558 bps
|
| Call protection: | Non-callable
|
| Trade date: | April 10
|
| Settlement date: | April 15
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: B-
|
| Fitch: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¾% to 8%
|
| Marketing: | Roadshow
|
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