Air Canada closes 777 financing with proceeds from EETC

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Air Canada-owned Loxley Aviation has closed financing on a second new Boeing 777-300ER delivery with the proceeds from its $714.5 million enhanced equipment trust certificate (EETC) private placement in April.

The aircraft (MSN 42219) is equipped with General Electric GE90-115BL engines.

According to Flightglobal's Ascend Online database, Air Canada has two additional 777-300ERs delivering this year in November and December. The final delivery under this facility is scheduled for February 2014.

The 2013-1 issue is split between a $424.4 million senior A tranche with a coupon of 4.125% and a final distribution of May 2025, $181.9 million subordinate B tranche with a 5.375% coupon and a May 2021 distribution, and $108.3 million C tranche with a 6.625% coupon with a bullet May 2018 maturity.

The A tranche is rated A, Baa3 and A- by Fitch Ratings, Moody's and Standard & Poor's, respectively, the B BB+, B1 and BB, and the C BB-, B3 and B.