Air Canada has resized its planned first lien senior secured term loan to $300 million and added $400 million in first lien senior secured notes to its planned about $1.4 billion secured debt issue.
The Montreal-based carrier had announced plans for a $700 million term loan through a private placement earlier this month.
The six-year tenor and security, which includes gates and slots at various airports as well as select route authorities, and spare engines and property, remain the same, according to Moody’s Investor Services.
The deal also includes C$300 million ($293.4 million) in first lien senior secured notes with a six-year tenor, $300 million in second lien senior secured notes with a 6.5-year tenor and a $100 million first lien senior secured revolving credit facility with a four-year tenor.
Fitch Ratings rates the first lien debt BB and the second lien BB-, Moody's the first lien B2 and the second lien Caa2, and Standard & Poor’s the first lien B+ and the second lien CCC+.
Proceeds of the debt will be used to repay the outstanding principal of Air Canada’s $600 million 9.25% senior secured notes due 2015, C$300 million 10.125% senior secured notes due 2015 and $200 million 12% senior second lien due 2016.
The airline launched the debt along with a cash tender for the outstanding notes on 6 September.