By Aleesia Forni
Virginia Beach, March 11 – Air Canada sold a $1,031,390,000 three-tranche issue of enhanced equipment trust certificates on Wednesday, according to a market source and a company release.
The company priced $667,370,000 of 3.6% certificates, series 2015-1, class A (A/A/) at par with a final expected distribution date of March 15, 2027.
There was also $182,010,000 of 3.875% certificates, series 2015-1, class B (BBB/BBB-) at par with a final expected distribution date of March 15, 2023.
Finally, it sold $182,010,000 of 5% certificates, series 2015-1, class C (BB-/BB) at par with a final expected distribution date of March 15, 2020.
Each class of certificates will represent an interest in a related pass through trust, with the proceeds to be used to acquire equipment notes to be issued by Air Canada and secured by one Boeing 787-8 aircraft delivered in January 2015 and eight new Boeing 787-9 aircraft, which are currently scheduled for delivery from July 2015 to March 2016.
The bookrunners were Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and TD Securities.
The Montreal-based airline plans to use the proceeds for general corporate purposes and to pay fees and expenses related to the offering, and will use the proceeds from the sale of the other equipment notes to finance the acquisition of the eight new Boeing 787-9 aircraft.
| Issuer: | Air Canada
|
| Issue: | Enhanced equipment trust certificates
|
| Amount: | $1,031,390,000
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., TD Securities
|
| Trade date: | March 3
|
| Settlement date: | March 25
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A certificates
|
| Amount: | $667,370,000
|
| Final distribution date: | March 15, 2027
|
| Coupon: | 3.6%
|
| Price: | Par
|
| Yield: | 3.6%
|
| Price talk: | 3.75% area
|
| Ratings: | Standard & Poor’s: A
|
| Fitch: A
|
|
|
|
|
| Class B certificates
|
| Amount: | $182,010,000
|
| Final distribution date: | March 15, 2023
|
| Coupon: | 3.875%
|
| Price: | Par
|
| Yield: | 3.875%
|
| Price talk: | 4.125% to 4.25%
|
| Ratings: | Standard & Poor’s: BBB
|
| Fitch: BBB-
|
|
|
|
|
| Class C certificates
|
| Amount: | $182,010,000
|
| Final distribution date: | March 15, 2020
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Price talk: | 5.125% to 5.25%
|
| Ratings: | Standard & Poor’s: BB-
|
| Fitch: BB
|
|
|
|
|
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