Air Canada today announced that it has entered
into an agreement with a group of purchasers for the sale of US $300 million
and 100 million Euros aggregate principal amount of its 10.25% senior notes
due March 15, 2011. The U.S. dollar notes and the Euro notes are being sold on
a private placement basis in the United States pursuant to Rule 144A under the
U.S. Securities Act of 1933, as amended (the “Securities Act”). The U.S.
dollar notes and the Euro notes are also being sold on a private placement
basis outside the United States. The closing of the placement is expected to
take place on or about March 15, 2001.
The senior notes are being offered at a price of 98.475% of par and will
result in estimated net proceeds to the Company of US $378 million. The net
proceeds of this offering will be used to refinance existing debt.
These senior notes have not been registered under the Securities Act and
may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
Air Canada is Canada`s premier domestic and international full-service
airline and provides worldwide passenger air transportation. The Company`s
common shares are listed on The Toronto Stock Exchange - trading symbols AC
and AC.A, and on the Nasdaq National Market - trading symbol ACNAF.