Air Canada Refinances $7 Billion of Debt; Q2 Results to be Released 23JUL

Air Canada Boeing B787-9-Wingflex in Air

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.”

Lynn Elmhirst

With a background in broadcast news and travel lifestyles TV production, Lynn is just as comfortable behind or in front of the camera as she is slinging words into compelling stories at her laptop. Having been called a multi-media ‘content charmer’, Lynn’s other claim to fame is the ability to work 24/7, forgoing sleep until the job is done. Documented proof exists in a picture of Lynn at the closing celebrations of an intense week, standing, champagne in hand - sound asleep. That’s our kind of gal.

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