Air Canada concludes funding programme

Air Canada has announced that it has concluded a series of agreements for secured financings with General Electric Capital Corporation (GECC) and its affiliates, providing the airline with up to US$195 million.Under the agreements, the amount of US$80 million was funded as the first of two tranches of a loan agreement which would provide Air Canada with US$155 million. The loan matures in 2014. The second tranche of the secured loan is expected to close and fund prior to the end of January 2009. Funding of the second tranche of the loan agreement, as well as retention of the funded first tranche, are subject to certain conditions, including conclusion of a sale and leaseback of one Boeing 777-300ER aircraft with GE Commercial Aviation Services (GECAS), a division of GECC.
This sale and leaseback for a lease term of 12 years will, upon conclusion, provide Air Canada with at least US$40 million (approximately C$48 million) of additional financing.
Full funding under all the agreements would provide Air Canada with financing of approximately US$195 million (approximately C$238 million).
These agreements represent additional steps in the implementation of Air Canada’s strategy of improving its short term and longer term liquidity through both traditional and non-traditional means.
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