03:07 PM EDT, 03/21/2024 (MT Newswires) -- Air Canada ( ACDVF ) said Thursday that it has completed the closing of US$2.15 billion senior secured credit facilities, comprised of (i) a US$1.175 billion term loan B maturing in 2031 and (ii) a US$975 million revolving credit facility maturing in 2029.

The aggregate gross proceeds of the term loan, together with cash from Air Canada ( ACDVF ) balance sheet of US$1.09 billion, are being applied to refinance all of Air Canada's ( ACDVF ) indebtedness outstanding under its existing US$2.265 billion term loan B maturing in 2028.

The revolving facility, the result of an upsize and extension of Air Canada's ( ACDVF ) existing US$600 million revolving credit facility previously maturing in 2025, is as yet undrawn, and any future borrowings thereunder would be intended to fund working capital and other general corporate purposes of Air Canada ( ACDVF ) and its subsidiaries. Concurrently with the closing of the senior credit facilities, Air Canada ( ACDVF ) also terminated its undrawn C$200 million revolving credit facility maturing in 2026.

Key highlights of the closing of senior credit facilities include:

reducing Air Canada's ( ACDVF ) outstanding senior secured indebtedness by US$1.09 billion;

reducing Air Canada's ( ACDVF ) interest rate on its term loan B borrowings, to 250 basis points over SOFR (with no SOFR floor, no spread adjustment); and

increasing available undrawn amounts under the Revolving Facility by US$375 million.

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