One day before it presents its second quarter results for this year, Air Canada has announced an almost-$7 billion refinancing of its debt.
Aviation industry media reporting the news pointed out the move comes three months after the carrier obtained nearly $6 billion in financial support from the federal government through the Large Employer Emergency Financing Facility (LEEFF) program in APR. That support involves fully repayable loans, and the airline would only draw on the available financing as needed.
In addition to government support, Air Canada also raised nearly $7 billion privately to survive the pandemic.
The debt refinancing revealed today will “include obtaining two senior secured credit facilities of an undisclosed amount.”
And in its statement about the refinancing, Air Canada said it would review “multiple funding sources” when evaluating the refinancing transactions.
One includes a term loan that will mature in 2028 and will be used to refinance existing debt and “will also be used for working capital and other general corporate purposes of Air Canada and its subsidiaries.”
