Moody’s rates Air Canada loans Ba3

Moody's Investors Service said it assigned Ba3 first-lien senior secured ratings to Air Canada's proposed $720 million term loan B due 2023 and $300 million first-lien senior secured revolving credit facility.

Air Canada's B1 corporate family, B1-PD probability of default and SGL-2 speculative grade liquidity ratings remain unchanged.

The outlook remains positive.

Proceeds, and C$300 million in additional secured debt, will be used to refinance Air Canada's existing $300 million first-lien term loan B; its $400 million 6¾% first-lien senior secured notes; its C$300 million 7 5/8% first-lien senior secured notes; and its $300 million 8¾% second-lien senior secured notes.

The associated Ba3 ratings on the existing first-lien secured debt issues and the B2 rating on the second-lien secured debt will be withdrawn if the new transaction closes and the existing debt is fully repaid.

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